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KAZ Minerals is constantly seeking to improve the energy efficiency of its facilities.
The Group has undergone a period of significant change since 2014 following the Restructuring in which 12 out of 16 mines and other assets were divested, followed by the completion of the construction of the major growth projects at Bozshakol and Aktogay. The new mines are world class copper assets with amongst the lowest operating costs in the world. Two important contributors to the low operating costs are the energy efficiency of the processing facilities and the low levels of waste rock that must be removed per tonne of copper ore mined. As the new mines have ramped up production and come to dominate the Group’s output, the overall energy efficiency of our operations has improved. The amount of energy used per kt of sulphide ore processed has reduced from 0.86 TJ in 2015 to 0.24 TJ in 2017.
Our improving energy efficiency demonstrates the benefits of using large scale, modern technology as well as the natural advantages of open pit mining of copper deposits with low strip ratios.
| Total | 9.93 | 7.22 |
| 2017 | 2016 | |
|---|---|---|
| Bozshakol | 3.71 | 2.44 |
| Aktogay | 2.53 | 1.05 |
| East Region | 3.33 | 3.39 |
| Bozymchak | 0.36 | 0.34 |
| Total | 9.93 | 7.22 |
| 2017 | 2016 | |
|---|---|---|
| Electricity | 6.91 | 4.27 |
| Diesel | 1.66 | 1.62 |
| Heat | 1.27 | 1.25 |
| Coal | 0.02 | 0.02 |
| Petrol | 0.07 | 0.06 |
Total energy use increased by 38% in 2017 compared to the prior year, reflecting the increase in copper output which grew by 80% as Bozshakol and Aktogay ramped up. Energy use of 3.69 PJ in the East Region and Bozymchak was in line with the prior year (2016: 3.73 PJ). The main driver of the increase in energy use was higher electricity consumption at Bozshakol and Aktogay.
| Total | 6.91 | 4.27 |
| 2017 | 2016 | |
|---|---|---|
| Bozshakol | 2.95 | 1.68 |
| Aktogay | 2.11 | 0.74 |
| East Region | 1.68 | 1.69 |
| Bozymchak | 0.17 | 0.16 |
The commencement of processing at the Aktogay sulphide concentrator in February 2017 and the ramp up of the main sulphide plant and clay ore processing plant at Bozshakol resulted in a 109% increase in combined electricity consumption to 5.06 PJ, from a total of 2.42 PJ consumed in 2016. In the East Region and Bozymchak electricity consumption remained in line with the prior year at 1.85 PJ (2016: 1.85 PJ).
| Total | 1.66 | 1.62 |
| 2017 | 2016 | |
|---|---|---|
| Bozshakol | 0.75 | 0.76 |
| Aktogay | 0.42 | 0.32 |
| East Region | 0.33 | 0.39 |
| Bozymchak | 0.16 | 0.15 |
Diesel consumption increased to 1.66 PJ, 2% higher than the level consumed in 2016 as mining activity increased at Aktogay to feed the ramp up of the new sulphide concentrator. Consumption of diesel at Bozshakol reduced by 1% to 0.75 PJ as the increase in ore extraction to 34,612 kt (2016: 28,272 kt) was offset by a lower volume of waste material mined of 6,425 kt (2016: 11,219 kt). Diesel consumption was also lower in the East Region as ore extraction volumes reduced to 3,919 kt from 4,664 kt in the prior year, following the closure of the Yubileyno-Snegirikhinsky mine at the end of 2016.
The Group utilises an automated remote dispatch system at Aktogay and Bozshakol to monitor fleet movements and utilisation in real time, enabling constant adjustments to improve efficiency and minimise diesel consumption. Bozshakol and Aktogay also benefit from close proximity to pre-existing rail infrastructure which enables rail networks to be used to transport copper concentrate to customers, eliminating the need to transport concentrate by diesel powered trucks.