diavik diamond mines inc. wind farm project
TRANSCRIPT
Diavik Diamond Mines Inc. Wind Farm Project
Liezl van Wyk
25 September 2013
2
Where we are located
3
Diavik Diamond Mine at a Glance • 5 John T Ryan safety awards
• Reserves: 18.9m tonnes at 3.1 c/t
• Mining 3 kimberlite pipes
• Average workforce: 1,165
• Construction 2000-2002
• Production began in 2003
• Sept 2012 – transition to all underground complete
5
• Remote and off-grid
• No Transmission grid future options
• Energy cost >25% of operational cost
• 100% diesel driven – supply chain starts in Alberta
• Ice road for 6 weeks for >70 million liters diesel resupply
- 2000 loads per winter road season
• Risk exposure – climate change, fuel price & volatility
- Diesel cost > $1.32/liter; tariff > $0.31/kWh
• Power security critical safety priority
– Arctic temperatures below -30C
– Underground Mining beneath diked Lac de Gras
Energy context for northern mines
Electrical Grid basics
• 2 Powerhouses
– PH1: 5 x 4.4 MW Cat generators
– PH2: 4 x 4.4 MW Cat generators, 2 x 3.6 MW
• 13. 8kV network, good QOS
• Power Factor: >0.9 (< 0.83 for UG)
• High and low heat recovery on gensets, connected to glycol loops
• Manually operated power grid
• System grounded via NGR
• System loads of 22 – 26 MW
Diavik Diamond Mines Inc. – A RIO TINTO COMPANY
7
Understanding Current Energy & Load Profiles
Total Site kW Load Profile
23.1 MW
0
5,000
10,000
15,000
20,000
25,000
11/01/27 00:00 11/02/01 00:00 11/02/06 00:00 11/02/11 00:00 11/02/16 00:00 11/02/21 00:00 11/02/26 00:00 11/03/03 00:00
Time
kW
To
tal
Process Plant kW Load Profile
5.4 MW
0
1,000
2,000
3,000
4,000
5,000
6,000
11/01/27 00:00 11/02/01 00:00 11/02/06 00:00 11/02/11 00:00 11/02/16 00:00 11/02/21 00:00 11/02/26 00:00 11/03/03 00:00
Time
kW
To
ta
l
108 M-l diesel
storage
1.2 MW
0
200
400
600
800
1000
1200
1400
11/04/23 00:00 11/04/24 00:00 11/04/25 00:00 11/04/26 00:00 11/04/27 00:00 11/04/28 00:00 11/04/29 00:00 11/04/30 00:00 11/05/01 00:00 11/05/02 00:00
kW
To
ta
l
Time
Paste Plant kW Load Profile
UG NSS kW Load Profile
6.0 MW
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
11/01/27 00:00 11/02/01 00:00 11/02/06 00:00 11/02/11 00:00 11/02/16 00:00 11/02/21 00:00 11/02/26 00:00 11/03/03 00:00
Time
kW
To
tal
Energy Options
• Connecting to existing grid and expanding hydro capacity – ROI prohibitive
• Solar – NPV negative with low penetration
• Geothermal – low temperature differentials
• Wind – largest penetration and NPV positive
• Diesel will continue to account for majority of energy source
Wind Farm at a Glance
• Four E70 Enercon 2.3 MW turbines (9.2MW total)
• Projected to provide 17 GWh of renewable energy per year
• Reliability – direct drive, gearless generator
• Blade de-icing system
• Reduce diesel consumption by 10% (YTD >3.0M liters)
• Reduce carbon footprint by 6% (12,000 tonnes CO2–e)
Project Economics
• Project competed for Diavik and Rio Tinto capital
• Capex Budget: $33M
• Actual spend: $31M
• Positive NPV
• Payback < 8yrs
• Economies of scale selection
• Higher risk model than typical Diavik project strategies
Project Timeline
• 3 year wind assessment concluded: Dec ‘10
• Capex approval Rio Tinto: May ‘11
• NRCan, NavCan, AANDC, EC approvals: June ‘11
• Enercon turbines contract sign: July ‘11
• Geotechnical drilling & micro siting: July ‘11
• Roads, foundation, crane pads: Aug - Nov ’11
• Winter road shipment to site: Febr/Mar ‘12
• Tower, nacelle and blade lifts, electrical work: July- Sept ‘12
• Commissioning: Sept/Oct ’12
• Operational: End Sept 2012
12
Logistics had to be well thought out..
Wind Farm Challenges
• 2012 – 2013 winter was the coldest in 20+ years
• Lubricants and Electronics need to operate at -30 to -40C
• Little frost build up on blades tolerated (blade heating)
• Tower heating for access and electronics
• Accurate calculation of diesel litres displaced & spinning reserve
Comparisons of Actual to Model (1/2)
• Yield (kWh) – Good operating months: 7% ahead of model
– Cold/poor performing Jan/Dec delivered <15% of yield budgeted
– Forecasting the P90 in Genivar model (15GWh) vs P50 originally in budget (17.2 GWh)
• Capacity Factor
– Genivar Net CF: 21 %
– Same period actual: 22% (excl Jan, Dec)
– CF monthly profile variances with model
– P50 to P75 values in Genivar model
– Resource model vs Turbine supplier
• Different assumptions (22% vs 27%), different losses included
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5 6
Capacity Factor
Enercon Model
Actual
Comparisons of Actual to Model (2/2)
• Penetration Ratios – Maximum achieved 52%
– Average of 9% (excl Dec, Jan)
– High ratios tend to be associated with high voltages (>14.5kV)
• Wind Speed: Model @ 60m: 7.22 m/s – YTD Resembles 2008 data closest
– Average of 6.3 m/s (excl Dec, Jan)
Supply – demand management focus
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
5
10
15
20
25
30
35
40
Mo
n 1
Oct
20
12
Sat
6 O
ct 2
012
Thu
11
Oct
20
12
Tue
16
Oct
20
12
Sun
21
Oct
20
12
Fri 2
6 O
ct 2
012
Wed
31
Oct
201
2
Mo
n 5
No
v 2
012
Sat
10 N
ov
201
2
Thu
15
No
v 2
012
Tue
20
No
v 20
12
Sun
25
No
v 20
12
Fri 3
0 N
ov
201
2
Wed
5 D
ec 2
012
Mo
n 1
0 D
ec 2
012
Sat
15 D
ec 2
012
Thu
20
Dec
201
2
Tue
25
Dec
20
12
Sun
30
Dec
20
12
Fri 4
Jan
201
3
Wed
9 J
an 2
013
Mo
n 1
4 J
an 2
013
Sat
19 J
an 2
013
Thu
24
Jan
20
13
Tue
29
Jan
201
3
Sun
3 F
eb 2
01
3
Fri 8
Feb
201
3
Wed
13
Feb
201
3
Mo
n 1
8 F
eb 2
013
Sat
23 F
eb 2
013
Thu
28
Feb
201
3
Tue
5 M
ar 2
013
Sun
10
Mar
201
3
Fri 1
5 M
ar 2
013
Wed
20
Mar
20
13
Mo
n 2
5 M
ar 2
013
Sat
30 M
ar 2
013
Thu
4 A
pr
2013
Tue
9 A
pr
201
3
Sun
14
Ap
r 20
13
Fri 1
9 A
pr
201
3
Wed
24
Ap
r 2
013
Mo
n 2
9 A
pr
201
3
Sat
4 M
ay 2
01
3
Thu
9 M
ay 2
013
Tue
14
May
201
3
Sun
19
May
201
3
Fri 2
4 M
ay 2
013
Wed
29
May
20
13
Mo
n 3
Ju
n 2
013
Sat
8 Ju
n 2
013
Thu
13
Jun
20
13
Tue
18
Ju
n 2
01
3
Sun
23
Ju
n 2
01
3
Fri 2
8 J
un
201
3
Wed
3 J
ul 2
013
Mo
n 8
Ju
l 201
3
Sat
13 J
ul 2
013
Thu
18
Jul 2
013
Tue
23
Ju
l 20
13
Sun
28
Ju
l 20
13
% P
en
etr
atio
n r
atio
W
ind
Sp
ee
d m
/2
Wind farm Performance Statistics kW Total
% Penetration ratio
Average wind speed m/s
Design kW
First winter operational challenges
0
50
100
150
200
250
300
350
400
Oct Nov Dec Jan Feb Mar Apr May June July
Compound % Availabilities
% Availab WT4
% Availab WT3
% Availab WT2
% Availab WT1
On track to meet budgeted supply
-1,000,000
1,000,000
3,000,000
5,000,000
7,000,000
9,000,000
11,000,000
13,000,000
10/
12/2
012
4:4
5:0
0 P
M1
0/15
/20
12 2
:15
:00
PM
10/1
8/2
012
11:
45
:00
AM
10/2
1/2
012
9:1
5:0
0 A
M10
/24
/201
2 6
:45
:00
AM
10/2
7/2
012
4:1
5:0
0 A
M10
/30
/201
2 1
:45
:00
AM
11/
1/20
12 1
1:15
:00
PM
11/
4/2
012
7:4
5:0
0 P
M1
1/7
/201
2 5
:15
:00
PM
11/
10/2
012
2:4
5:0
0 P
M11
/13
/201
2 1
2:1
5:0
0 P
M11
/16
/201
2 9
:45
:00
AM
11/1
9/2
012
7:1
5:0
0 A
M11
/22
/201
2 4
:45
:00
AM
11/2
5/2
012
2:1
5:0
0 A
M11
/27
/201
2 1
1:4
5:0
0 P
M1
1/30
/20
12 9
:15
:00
PM
12/
3/2
012
6:4
5:0
0 P
M1
2/6
/201
2 4
:15
:00
PM
12/
9/2
012
1:4
5:0
0 P
M12
/12
/201
2 1
1:1
5:0
0 A
M12
/15
/201
2 8
:45
:00
AM
12/1
8/2
012
6:1
5:0
0 A
M12
/21
/201
2 3
:45
:00
AM
12/2
4/2
012
1:1
5:0
0 A
M12
/26
/201
2 1
0:4
5:0
0 P
M1
2/29
/20
12 8
:15
:00
PM
1/1
/201
3 5:
45:0
0 P
M1/
4/2
013
3:15
:00
PM
1/7
/201
3 1
2:4
5:0
0 P
M1/
10/2
013
10
:15
:00
AM
1/1
3/20
13 7
:45:
00
AM
1/1
6/20
13 5
:15:
00
AM
1/1
9/20
13 2
:45:
00
AM
1/22
/201
3 1
2:1
5:0
0 A
M1
/24
/201
3 9
:45
:00
PM
1/2
7/2
013
7:1
5:0
0 P
M1
/30
/201
3 4
:45
:00
PM
2/2
/201
3 2:
15:0
0 P
M2/
5/2
013
11
:45:
00 A
M2/
8/2
013
9:1
5:00
AM
2/1
1/20
13 6
:45:
00
AM
2/1
4/20
13 4
:15:
00
AM
2/1
7/20
13 1
:45:
00
AM
2/1
9/20
13 1
1:15
:00
PM
2/2
2/2
013
8:4
5:0
0 P
M2
/25
/201
3 6
:15
:00
PM
2/2
8/2
013
3:4
5:0
0 P
M3/
3/2
013
1:15
:00
PM
3/6
/201
3 1
0:4
5:00
AM
3/9/
20
13 8
:15:
00 A
M3/
12/
2013
6:4
5:0
0 A
M3/
15/
2013
4:1
5:0
0 A
M3/
18/
2013
1:4
5:0
0 A
M3
/20/
2013
11:
15:0
0 P
M3
/23
/201
3 8
:45
:00
PM
3/2
6/2
013
6:1
5:0
0 P
M3
/29
/201
3 3
:45
:00
PM
4/1
/201
3 1:
15:0
0 P
M4/
4/2
013
10
:45:
00 A
M4/
7/2
013
8:1
5:00
AM
4/1
0/20
13 5
:45:
00
AM
4/1
3/20
13 3
:15:
00
AM
4/16
/201
3 1
2:4
5:0
0 A
M4
/18/
2013
10:
15:0
0 P
M4
/21
/201
3 7
:45
:00
PM
4/2
4/2
013
5:1
5:0
0 P
M4
/27
/201
3 2
:45
:00
PM
4/3
0/20
13 1
2:15
:00
PM
5/3/
20
13 9
:45:
00 A
M5/
6/2
013
7:1
5:00
AM
5/9/
20
13 4
:45:
00 A
M5/
12/
2013
2:1
5:0
0 A
M5
/14/
2013
11:
45:0
0 P
M5
/17
/201
3 9
:15
:00
PM
5/2
0/2
013
6:4
5:0
0 P
M5
/23
/201
3 4
:15
:00
PM
5/2
6/2
013
1:4
5:0
0 P
M5/
29/2
013
11
:15
:00
AM
6/1/
20
13 8
:45:
00 A
M6/
4/2
013
6:1
5:00
AM
6/7/
20
13 3
:45:
00 A
M6/
10/
2013
1:1
5:0
0 A
M6
/12/
2013
10:
45:0
0 P
M6
/15
/201
3 8
:15
:00
PM
6/1
8/2
013
5:4
5:0
0 P
M6
/21
/201
3 3
:15
:00
PM
6/2
4/20
13 1
2:45
:00
PM
6/27
/201
3 1
0:1
5:0
0 A
M6/
30/
2013
7:4
5:0
0 A
M7/
3/2
013
5:1
5:00
AM
7/6/
20
13 2
:45:
00 A
M7/
9/2
013
12
:15:
00 A
M7
/11
/201
3 9
:45
:00
PM
7/1
4/2
013
7:1
5:0
0 P
M7
/17
/201
3 4
:45
:00
PM
7/2
0/2
013
2:1
5:0
0 P
M7/
23/2
013
11
:45
:00
AM
7/2
6/20
13 9
:15:
00
AM
7/2
9/20
13 6
:45:
00
AM
kWh
Energy generated : Oct 2012 - July 2013
Total Windfarm
Turbine 1
Turbine 2
Turbine 3
Turbine 4
Linear (Target)
Environment
• Windfarm within existing lease
• EnvCan, WLWB: Consideration of bird and caribou migration pattern; analogy to impact on cattle due to lacking case studies
• Voluntary bird mortality surveys
• Minimized footprint (crane pads used as laydown areas, fly rig for geotech foundation drilling)
• Early involvement and open communication with AANDC
• Archaeological study done for sacred aboriginal artifacts on project site
Communities
• Demonstrates wind power as a viable option for the North
• Early involvement of communities through engagement letters
• Community consultation showed no concerns with the project
• Presentations for EMAB (includes community representatives)
• Donated weather tower to Det’on Cho Earth Energy Giant Mine wind study
Project Innovations
Healthy list of In-house Innovations:
• Earthing/grounding
• SCADA
• Logistics
• Contracting
• Project costs
Mining well suited to construct at lower cost due to inhouse:
• Drilling and blasting
• Surveying
• HME and ground works
• Skills/trades
• Safety systems
• Batch plant & concrete mixing
Questions