Energy Efficiency Key for Mining’s Long-Term Viability: Aggreko

The UK-based energy solutions provider Aggreko suggests the Mexican mining sector could significantly boost competitiveness and ensure the long-term viability of projects by prioritizing sustainable energy solutions. According to the company, adopting these solutions could not only create more jobs but also enhance the sector's tax contributions.

According to the Mexican Mining Chamber (CAMIMEX), affiliated companies are poised to reach US$11 billion in revenue between 2024 and 2025 with enhanced sector competitiveness, leading to increased job opportunities and tax contributions.

Carlos Grez, LATAM’s Director for Mining, Aggreko, says achieving a balance between supply and demand with the best technology remains a primary challenge for the Mexican energy market. Grez emphasized the importance of a flexible, scalable, and project-appropriate energy solution as the key to meeting this challenge. "One of the major challenges is to provide an energy supply that meets the three factors of great impact in the mining sector: sustainability, energy security, and supply’s economic competitiveness. Using the best resources and technology to achieve this balance is the main challenge facing the energy market in Mexico,” he said. 

Aggreko notes decarbonization of the energy matrix has become a global priority for mining companies. The shift toward cleaner and more sustainable energy sources, such as solar, wind, and hydroelectric power, not only aids in combating climate change but also offers long-term economic benefits by reducing reliance on fossil fuels and mitigating risks associated with oil and gas price volatility.

Cost efficiency is another critical aspect of energy management in mining. Companies are prioritizing process optimization and efficient resource use, leveraging innovative technologies to maximize energy efficiency, reduce operating costs, and minimize unused installed capacity.

Ensuring operational continuity at all stages of mining operations is also fundamental for maintaining productivity and profitability. With the rise in extreme weather events and geopolitical challenges, companies are investing in resilient infrastructure and backup systems to mitigate energy supply interruptions. 

Contingency measures are being implemented from exploration and extraction to processing and transportation to ensure uninterrupted mining operations, especially for critical minerals. "The remote and isolated nature of mining operations demands a reliable and sustainable energy supply, either permanently in island mode, as a complement to the integrated energy supply, or as a backup. The decarbonization objectives set by the main actors in the sector lead, for example, to the replacement of fossil fuel mining transport vehicles with electric ones,” Grez added. 

Transitioning to more efficient and modern energy generation fleets, which are less polluting and can utilize heat cycles through CHP with remote monitoring for load optimization, as well as effective operation and maintenance, can positively impact production costs. Another example is the electrical connection of mining units, which represents between 5 and 10% of the total production cost. Migrating to mobile and sustainable energy can lead to savings of between 30 and 50%, Aggreko noted. Mining companies have also found operational improvements through high-efficiency thermal generation equipment, rapid response to energy emergencies through better fleets, and increased operational safety.