Technology Innovation in the Mining Sector

October, 2018

Glencore Global Operations

3

Mining Operation

Plant

Ni Rim

South Mine

Smelter

Strathcona Mill

City of

Sudbury10km

Fraser Mine

Sudbury Operations

Craig Mine

Onaping Depth Project

Onaping Depth Project

5

2600m below

surface

Craig Mine

Onaping Depth

Approx. 1km between Craig and OD shafts

Craig shaft

Battery Electric Vehicles – Onaping Depth

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CraigShaft

OnapingNo. 1 Shaft

4000L

4300L Truck Dump

4500L Crusher

4700L Loading PocketOnapingNo. 2 Shaft

5700L

Ore Bin

WasteBin 4000L Tram

2555L

1200L

2605L loading pocket

#1 #7

1150L

4900L

FARRAR

6

1440L

160 149 235

Tram Drift (4.6 m x 5.4 m)

Exploration Drift

213

RA Ramp(4.6 m x 5.4 m)

67

ExhaustFans

182

200

176

2635L shaft bottom

182

2515L

2405L

1915L

7168

64

50

67

61

200

2320L

2300L

2280L

2340L

2380L2360L

2405L

2430L

2455L

2480L

2505L

2530L

2555L

1985L

2580L

RA Raise(3.8 m)

6

139

#6

137

FA Raise (3.8 m)

Refrigeration Plant

#3/4

FA Booster Fan

Egress Raise(3.0 m)

-31%

-24%

BAC = 19.2 MWr

CSC = 25.3 MWr

Ventilation

Refrigeration

Diesel

Battery

Electric

300 m3/s 180 m3/s

BAC = 13.3 MWr

CSC = 17.5 MWr

Total Power 14,200 kWe

10,900 kWe

3,300 kWe

8,400 kWe

6,100 kWe

2,300 kWe

6.5 m 5.0 mShaft Diameter

RAR Diameter 5.0 m 3.8 m

-40%

-23%

-44%

-30%

-41%

Eliminated:

• Return Air Ventilation

Ramp

• Fresh Air Raise

• (3) Ventilation Fans

• (5) Ore Passes

(replaced w/ battery

electric haul trucks

regenerating power

down ramp

Things to Overcome – BEV Mine Design

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• Regulations – Ontario Air Quality

• Requires 96 cfm/hp – based on diesel equipment underground.

• Uncertainty of Supply, Performance and Cost of BEV fleet

• Supply

– Stay in regular contact with OEM’s on their technology roadmaps

– Create a network of Mining Companies and organizations to share experiences.

• Performance

– Buy units and get first hand experience- we started with a personnel carrier in 2015

– Get OEM’s to perform duty cycle simulations of proposed equipment.

– Run tests at sites to validate performance claims.

– Create a network of Mining Companies and organizations to share experiences.

• Cost

– Have appropriate premium allowance in the project budget based on vehicle class and size.

• Mine Design

• Must design the mine around the BEVs capabilities and needs.

Things to Consider – BEV Mine design

• Take advantage of re-generation

• Limitation – method for releasing energy when fully charged.

• On board vs off board chargers

• Battery swapping vs batteries stay in vehicles

• Battery chemistries

• Safety considerations

• How to maximise life

• Opportunity charging capacity

• How many different chemistries can your mine handle

• Parking and charging locations

• Charging management systems – individual vehicles and for fleet

• Rent or buy batteries

• Battery disposal

• Power quality

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Battery Electric Vehicles

Improved Vehicle Characteristics

• No emissions

• Improved performance

• Less heat from vehicles (5x)

• Less noise

• Simpler machinery

• Less wear and tear

• Less maintenance

Benefit to Mining

• Health benefits

• Less particulates – DPM elimination

• Quieter

• Less vibration

• Less heat from equipment

• Less ventilation

• Reduce size & number of ventilation openings

• Less auxiliary fans

• Reduce size of refrigeration plant

• Less heating of mine air in winter (if required)

• Overall lower energy usage and cost

• Improved productivity

• Subjective at present – but mostly due to air quality, vibration, noise and heat benefits

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Operating Mining Equipment in the Future

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11

Autonomous Mining Operations

Productivity Improvement+40%

May 30 Operator Training

(Simulation Mode)

2018Convert 2nd LHD

Safety

WMSD – Travel/Mount/Dismount

Hygiene – Ergonomic Stations

Fatigue / Distraction

FHP – Seatbelt Compliance

Collision avoidance

Productivity

Hot Seat Change Overs

Mucking between shifts (surface)

Gas clearing / seismic operation

Multiple machines per operator

Reduced fleet & faster stope cycling

Equipment

Reduced component damage

Reduced tire wear

Faster tram times (scoop controlled)

Real time operating data

Increased working time due to

reduced operating delays+20%

2017 Cat LHD Converted

(Operating in Auto)

Renewable Energy in Mining Operations

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The Raglan Mine – Mining in the Arctic

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• Aerial or maritime access only

• No connexion to the electric grid or natural gas network

Largest diesel consumer in the Arctic : 100 % diesel

Largest GHG emitter in the Arctic : >100 000 tonnes of GHG

Diesel is the 2nd most significant cost center at Raglan Mine

• Mine Raglan Life of Mine : over 25 yrs as of today

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3 MW Wind Turbine with cold weather package and fit-for-purpose foundation design

Coupled technologies has further increased fuel displacement

Additional diesel fuel displacement opportunities

• Replace diesel with natural gas

• Hydrogen can be used in other applications e.g. zero-emission transport fuel

• Electric vehicles for surface and underground mining trucks, further reducing ventilation needs

Renewable Energy in Action

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The Next Journey : Energy Storage

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Hatch William’s flywheel GTR 200:

• 200 kW of storage for up to 27 sec

Hydrogenic’s HySTAT 60 electrolyser and

HyPM R200 fuel cells :

• 200 kW of storage capacity for up to 20 hrs

Electrovaya’s Li-Ion battery solution:

• 200 kW of storage for up to 74 mins

Controlled by Hatch’s HµGrid

• Reduce power fluctuations on the grid and

increase penetration level of wind energy

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