Energy Efficiency and Climate Change
Going Beyond the Mine
Climate change is one of the key economic and environmental challenges facing the world today, according to the Intergovernmental Panel on Climate Change (IPCC). Beyond this, climate change also has the potential to affect our business. A cap-and-trade scheme to manage emissions is a possibility both in Australia and in the United States. These schemes have the potential to directly impact our costs in both regions.
These programs have the potential to increase costs for essential commodities such as diesel fuel and electricity. Finally, our operations could be threatened by other events predicted by the IPCC, such as impacts on shipping ports, or climate patterns altering fundamental infrastructure like roads, dams or water supplies.
Energy costs are currently estimated to be 10-30 percent of overall operating costs - approx. $761 million in 2010 or $119/oz; expected to increase to $177/oz by 2020. Adopting energy-saving strategies can potentially save Newmont up to $20 million per year across our Asia Pacific sites alone.
Recognizing the inseparable relationship between energy and GHG emissions, Newmont instituted a Global Energy and Carbon Team (GECT) in 2010. The mission of the GECT is to provide the focused knowledge and expertise to support Newmont Projects and Operations in development and implementation of energy and carbon management solutions.
These programs have the potential to increase costs for essential commodities such as diesel fuel and electricity. Finally, our operations could be threatened by other events predicted by the IPCC, such as impacts on shipping ports, or climate patterns altering fundamental infrastructure like roads, dams or water supplies.
Energy costs are currently estimated to be 10-30 percent of overall operating costs - approx. $761 million in 2010 or $119/oz; expected to increase to $177/oz by 2020. Adopting energy-saving strategies can potentially save Newmont up to $20 million per year across our Asia Pacific sites alone.
Recognizing the inseparable relationship between energy and GHG emissions, Newmont instituted a Global Energy and Carbon Team (GECT) in 2010. The mission of the GECT is to provide the focused knowledge and expertise to support Newmont Projects and Operations in development and implementation of energy and carbon management solutions.
How We Engage
One of the most effective ways to reduce carbon emissions is to utilize energy more efficiently, which in turn reduces our costs.
We are preparing for carbon regulation in the United States and Australia by identifying and evaluating carbon offset opportunities to reduce anticipated financial liabilities in a carbon-constrained future. Offset opportunities include forestry projects, energy efficiency measures, fuel switching, and renewable energy projects (including solar, wind and geothermal).
In 2009, we developed our Carbon Management Policy, which was finalized in February 2010.
For More Information:
Newmont's Carbon Management Policy
Case Study:
Tackling Climate Change with a Smarter Energy Approach
We are preparing for carbon regulation in the United States and Australia by identifying and evaluating carbon offset opportunities to reduce anticipated financial liabilities in a carbon-constrained future. Offset opportunities include forestry projects, energy efficiency measures, fuel switching, and renewable energy projects (including solar, wind and geothermal).
In 2009, we developed our Carbon Management Policy, which was finalized in February 2010.
For More Information:
Newmont's Carbon Management Policy
Case Study:
Tackling Climate Change with a Smarter Energy Approach
2010 Overview
Newmont has completed The Climate Registry's verification process. The Registry is in the process of conducting a final review before accepting Newmont's report and making it publicly available. TCR is a rigorous program that requires participating companies to measure their carbon footprint, verify the findings with an independent third party, and publicly report the results.
In 2010, we reported our 2009 North American emissions, and we plan to report our 2010 global carbon footprint in 2011. Our 2009 North American emissions have completed verification by a third party accredited by the American National Standards Institute (ANSI) to conduct GHG inventory verification services for Members of The Climate Registry.
In 2010, Newmont hired a Corporate Energy Efficiency manager to work with the regions in support of energy efficiency activities. The APAC and North America regions are leading the way.
Newmont Jundee has found ways to save $2-3 million per year. For example turning off sections of the underground mine where there is no activity, installing low-flow shower heads, reducing the thermostat temperature of the hot water system, gen-set load sharing, and improvement of ventilation fan efficiency.
Newmont Nevada is working with Wells Rural Electric and Bonneville Power Authority this year to reduce energy consumption at our Carlin, Nevada operations that include Gold Quarry and the Carlin roaster. Results of our lighting study show projected savings of 2,471,583 kW per year (see below).
Gold Quarry
Below is a summary of the Lighting Projects.
Admin Building
Leeville
An energy study identified many potential energy conservation measures at the Leeville Mine. Annual energy savings for all measures are estimated to be 6,361,322 kWh for electricity, with demand savings of 316 kW, and 40,028 therms of propane savings (43,747 gallons). The estimated annual cost savings for all measures are $304,171, at an implementation cost of $2,036,139 for a simple payback of 6.7 years.
The following figures provide a summary of Newmont's 2010 GHG emission data.
Note: 2009 data corrected to account for electricity sold and not consumed by Newmont from Nevada TS Power Plant.
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In 2010, we reported our 2009 North American emissions, and we plan to report our 2010 global carbon footprint in 2011. Our 2009 North American emissions have completed verification by a third party accredited by the American National Standards Institute (ANSI) to conduct GHG inventory verification services for Members of The Climate Registry.
In 2010, Newmont hired a Corporate Energy Efficiency manager to work with the regions in support of energy efficiency activities. The APAC and North America regions are leading the way.
Newmont Jundee has found ways to save $2-3 million per year. For example turning off sections of the underground mine where there is no activity, installing low-flow shower heads, reducing the thermostat temperature of the hot water system, gen-set load sharing, and improvement of ventilation fan efficiency.
Newmont Nevada is working with Wells Rural Electric and Bonneville Power Authority this year to reduce energy consumption at our Carlin, Nevada operations that include Gold Quarry and the Carlin roaster. Results of our lighting study show projected savings of 2,471,583 kW per year (see below).
Gold Quarry
Below is a summary of the Lighting Projects.
Admin Building
- Estimated energy savings - 141,522 kWh/yr
- Estimated cost savings - $3,693/yr
- Estimated project cost - $46,480
- Estimated utility incentive - $32,536
- Estimated Payback After Incentive - 3.8 years
- Estimated energy savings - 1,719,693 kWh/yr
- Estimated cost savings - $44,884/yr
- Estimated project cost - $409,055
- Estimated utility incentive - $286,339
- Estimated Payback After Incentive - 2.7 years
- Estimated energy savings - 610,368 kWh/yr
- Estimated cost savings - $15,930/yr
- Estimated project cost - $144,560
- Estimated utility incentive - $101,500
- Estimated Payback After Incentive - 2.7 years
Leeville
An energy study identified many potential energy conservation measures at the Leeville Mine. Annual energy savings for all measures are estimated to be 6,361,322 kWh for electricity, with demand savings of 316 kW, and 40,028 therms of propane savings (43,747 gallons). The estimated annual cost savings for all measures are $304,171, at an implementation cost of $2,036,139 for a simple payback of 6.7 years.
The following figures provide a summary of Newmont's 2010 GHG emission data.
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