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Liz Darling, Energy Efficiency ISI, August 2012

Energy efficiency for the mining industry Go-to-market workshop materials


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Outline

Mining market overview


Challenges / trends Top global companies / producing countries

Mining process Energy efficiency


Energy demand Energy efficiency opportunities

ABB EE products / solutions Go-to-market strategy


Key messages Target market / audience Obstacles to sales Sales strategy concept Marketing materials

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Mining industry 2011 results

The last ten years have seen some of the greatest ups and downs in the mining industry due to the global economy

2011 showed record profits for the Top 40 mining companies of $133B but market capitalization fell 25%

European debt crisis lingered and the market questioned the long-term growth of developing countries Net profits increased but net profit margins remained steady reflecting a change in cost base. Costs increased 25% on previous year

The industry invested a record $98B in capital projects and plan for $140B in investment for 2012 in an effort to increase supply Structural change seen in mining: higher average commodity prices with higher production costs and lower ore grades - - therefore, increasing gross margins not guaranteed
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Source: PWC Mine 2012: The growing disconnect


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Mining industry 2011 results

The mining industry is considered an indicator of the global economy and as a result, mining stocks have been volatile. Mining stocks are more volatile than the general market but uncertainties of the global economic has added uncertainty 2011 financial results for Top 40

Revenues increased 26% to over $700 billion

Net profit was up 21% to $133 billion


Total assets remained about $1 trillion and grew a 13 percent

Miners must balance pressure to expand supply requiring development of new projects, and investors demanding capital discipline to increase shareholder returns Mining companies also required to develop resources sustainably
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Source: PWC Mine 2012: The growing disconnect


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Top 4 mining companies Based on market capitalization


Top 4 companies constitute 38% of Top 40 capitalization (down from 44% in 2009) Iron important to emerging markets: Less diversity: more iron ore mining for the largest diversified mining companies: BHPB, Rio Tinto, Vale, AngloAmerican and Xstrata. Iron ore now 42% of revenue percentage (from 20% in 2007)

Primary gold companies represent the single largest commodity group at 21% (up from 16% 2010) include Barrick Gold, Newmont, Randgold and Kinross)
Source: PWC Mine 2012: The growing disconnect
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Top 40 mining companies (based on capitalization)


Company Anglo American* AngloGold Ashanti Antofagasta plc Barrick Gold BHP Billiton China Coal Energy Co China Shenhua Energy Coal India Limited Compania de Minas Buenaventura SA Vale SA Eurasian Natural Resources First Quantum Minerals Fortescue Metals GP Freeport McMcRan Country UK S. Africa UK Canada Australia/UK China/HK China/HK India Peru Brazil UK Canada Australia USA Company Glencore International Gold Fields Limited Goldcorp Country UK S Africa Canada Company Polyus Gold Potash Corporation of Saskatchewan Inc. Randgold Resources Limited Rio Tinto plc & Limited* Silver Wheaton Corporation Tech Resources Limited The Mosaic Company Uralkali JSC Xstrata plc Yamana Gold Inc. Australia USA USA Yanzhou Coal Mining Company Limited Zijin Mining Group Company Limited Country UK/Russia Canada UK UK/Australia Canada Canada USA Russia UK Canada China/HK China/HK

Grupo Mexico S.A. de CV


Impala Platinum Industrias Penoles Ivanhoe Mines Limited Jiangxi Copper Co. Kinross Gold Corp MMC Norilsk Nickel National Mineral Development Newcrest Mining Newmont Mining Corporation Peabody Energy Corporation

Mexico
S Africa Mexico Canada China/HK Canada Russia India

Source: PriceWaterhouseCooper Mine 2012: The growing disconnect. Country refers to primary listing site.
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*Group Accounts

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Mining industry environment

PWC submits that though demand has been the headline story over the last five years, the main story for the next will be supply. Issues facing supply include

Structural changes to cost bases caused by decreasing grades and increasing input costs Changes in fiscal structures (government) and resource nationalism

Disruption to production
Remoteness of mining locations and increasing capital expenditure required to bring supply to market

The industry has struggled to bring new mines online on time and in budget. Remote locations lack infrastructure to support mining activities and miners

Capital investment and time required to bring projects online is immense, especially for iron ore and coal
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Source: PWC Mine 2012: The growing disconnect


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Mining industry environment

Mines are remote hard to get to locations Large capital investment required for mining equipment, personnel, infrastructure.

Mining sites are like their own cities requiring power, remote facilities, water treatment, transportation (rail, etc.) to ports or utility sites

Often in countries that are not political stable


Persistent pressure from government and communities demanding share of mining return - environment and taxing concerns

Source: PWC Mine 2012: The growing disconnect


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Shifting social, economic and political trends affecting mining sector


In the last year, mining royalties have increased in Australia, Chile, Peru, S. Africa, Ghana, Tanzania & Burkina Faso. Export duties introduced in India, Kazakhstan & Russia

Cost inflation is higher (cost of doing business) cost of equipment, electricity to labor demands. Taxes & royalties to hauling truck tires Fiscal governmental policy changing increased unpredictability, associated costs, volume Commodity price volatility greater than ever driven my market uncertainty

More community activism over sustainability and the environment


Infrastructure strain rail, ports, housing, schools expected to account for 82% of project spend Corporate cash holdings increased resulting in shareholder expectations Economic crisis / destructive weather

Source: Deloitte Tracking the trends 2012


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The mining environment

Ernst & Youngs global mining and metals division recently published a report stating the top business risks in mining for 2012
1. 2. 3. 4. 5. 6. 7.

Resource nationalism Skills shortage Infrastructure access

Maintaining a social license to operate


Capital project execution Price and currency volatility Capital allocation

8.
9. 10.

Cost management
Interruptions to supply Fraud and corruption
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Revenues by commodity Iron ore, coal and copper are 57% of Top 40 revenue
Top 40 posted revenues of $700B for 2011. Iron ore increased the most. Aluminium revenues the only to decrease.

Source: PWC Mine 2012: The growing disconnect, PWC Analysis


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Emerging versus traditional markets Top 40


Top 19 of the Top 40 have primary operations in emerging markets (up from 18 in 2010).

Traditional markets are those with bulk of operations in Australia, Canada, S. Africa or USA.

Source: PWC Mine 2012: The growing disconnect, PWC analysis


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Top iron ore producing countries


Country China production estimate based on crude ore, rather than usable ore which is reported for other countries Mine Production* 2010 China Australia Brazil India Russia Ukraine South Africa USA Canada Iran Sweden Kazakhstan 1070 433 370 230 101 78 59 50 37 28 25 24 2011e 1200 480 390 240 100 80 55 54 37 30 25 24 Reserves* Crude Ore 23,000 35,000 29,000 7,000 25,000 6,000 1,000 6,900 6,300 2,500 3,500 3,000

Venezuela
Mauritania Other countries

14
11 48

16
11 50

4,000
1,100 12,000
*Million tons

Source: U.S. Geological Survey, Mining Commodity Survey, January 2012


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Top coal producing countries

Coal Statistics 2011 - coal provides 29.6% of global primary energy needs and generates 42% of the world's electricity

Top Hard Coal Producers (2010e) Top Brown Coal Producers (2010e) PR China USA India 3162Mt 932Mt 538Mt Germany Indonesia 169Mt 163Mt

Russia
Turkey Australia USA

76Mt
69Mt 67Mt 65Mt

Australia
South Africa Russia Indonesia

353Mt
255Mt 248Mt 173Mt

Greece
Poland Czech Republic Serbia

56Mt
56Mt 44Mt 37Mt

Kazakhstan
Poland Colombia

105Mt
77Mt 74Mt

Source: World Coal Association 2010 estimate


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Top copper producing countries

Country

Mine Production* 2010 2011e 5420

Reserves* Crude Ore 190,000

Chile

5420

Peru
China USA

1250
1190 1110

1220
1190 1120

90,000
30,000 35,000

Australia
Zambia Russia Indonesia Canada Congo (Kinshasa) Poland Mexico Kazakhstan Other countries

870
690 703 872 525 343 425 260 380 1900

1120
715 710 625 550 440 425 365 360 2000

86,000
20,000 30,000 28,000 7,000 20,000 26,000 38,000 7,000 80,000
*Million tons

Source: U.S. Geological Survey, Mining Commodity Survey, January 2012


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Top gold producing countries

Chinese 2011 production grew 11.4% from 2010 Total gold output at 2789 tonnes, a 5.7% increase from 2010 production of 2638 tonnes
Country China Australia USA South Africa Russia Peru Ghana Canada Indonesia Mexico 2011 Production (tonnes) 380 272 243 221 205 156 102 101 97 82 2010 Production (tonnes) 341 260 236 209 197 163 92 91 128 72

Source: London based metals research company CRU states


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Mining process

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Mining and minerals processing


Mining
Open pit

Underground Coal Processing

Minerals Processing
(Leaching, electro winning)

Ore Preparation
(Screening, classification, pelletizing Ore Concentration (beneficiation, blending, concentration, agglomerating)
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Mining development

Mining development steps


Exploration or prospecting discovery of ore body Development create access to ore body, power, accommodations, processing plants, equipment obtained. Mine the mineral Reclamation Once ore cannot be produced profitability, process to make land used by mine suitable for future use

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Mining methods and processing

Mining methods two basic types


Open pit (cast) surface mining Underground or sub-surface mining Gravity-dependent methods of separation such as panning, hydraulicking or sluice boxes

Processing of ore materials consists of

Crushing or pulverizing such as for iron ore valuable mineral extracted aster crushing by mechanical and chemical techniques
Leaching is a less common method that may be used for target minerals that are soluble, eg., potash, potassium chloride, sodium chloride, sodium sulfate and uranium oxide which dissolve in water. No digging in process.

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Mining methods Extraction of solid mineral resources from Earths crust

Objective is to extract ore of a predetermined grade or higher, leave behind as much lower grade ore and barren rock Open pit (cast) surface mining

Dragline removing mountain top or in pit Dozer along contour Auger mining Strip mining (example: over bridge with bucket wheel excavator to remove overburden then extract coal)

Overburden is removed, blasting may be required to break up the rocks or excavating with digging / scraping machinery
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Mining methods Extraction of solid mineral resources from Earths crust

Sub-surface or underground mining in slopes or rooms, materials left to support the ceiling is called a pillar and may be recovered and used later

Shaft mine (hoist) Slope mine Drift mine Long walling (coal)

Less disruption to surface (unless cave in due to vacant materials) More expensive Mine drainage water can require significant costs

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Mining methods

Heavy equipments such as draglines, shovers, bucketwheel excavators, trucks, large drills, cranes, conveyors, etc. used to remove materials. Sometimes minerals have to be broken up via blasting. Materials are sometimes processed or crushed before transporting via truck or conveyor.
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Mining steps

Mining wastes

Large quantity of rock and water wastes generated by extraction operations Another waste is overburden generated by surface mines

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Mining machinery Heavy machinery is needed in large scale mining for


Exploration and development to remove and stockpile overburden Breaking and removing rocks of various hardness (blasting) Processing the ore Reclamation efforts after the mine is closed Example equipment

Stockyard and storage blending system

Draglines Shovels Bulldozers Front-end loaders Bucket wheel excavators Drills Cranes Conveyors Hoists Blasting equipment Trucks (diesel or electric)

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January 14, 2013 Slide 25 ABB Confidential - - Internal Use |Only

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Ore beneficiation (Milling and leaching)

Following the initial mining step, often content of valuable mineral in mining ore is too low to allow for efficient processing. Therefore the ore must be beneficiated.

Goal is to ship highest quality A concentrator is the factory to beneficiate the ore

Comminution is the function of crushing or grinding the ore to physically liberate the target mineral. Concentration is separation of mineral values Milling consists of several steps. Concentrator normally located next to mine to minimize shipping costs. Milling steps for beneficiation start with

Screening
Primary crushing Secondary crushing
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Ore beneficiation or concentration

Typically stage 2 beneficiation includes

Grinding usually two stages (water added at SAG / ball mill) Separation Flotation (often primary and secondary steps) Thickener, tailings pond and waste water treatment plant Electrolytic filtration Drying Concentrate shipping

All plants have unique layouts and sequence of steps

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Ore beneficiation or concentration Grinding


Grinding is a major use of energy. A high percentage of grinding energy converted to heat.

After materials go through primary and secondary crushing, grinding is the next operation

Particles reduced in size by a combination of impact, chipping and abrasion


Grinding primarily done in rotating steel cylinders known as tumbling mills The difference between crushing and grinding is that in addition to ore particles, also loose grinding media present (steel rods, balls, hard rocks (pebbles), etc.) for grinding Very high recirculating loads or, each tonne of product is ground multiple times Grinding can be done dry but is usually done wet (in slurry) which allows for transport of materials in a slurry, dust suppression and heat dissipation Speed of drum is calibrated to where falling media pieces must not fall on the drum liner, but on the ore particles (centrifugal acceleration equal to gravitational acceleration)
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Dry grinding prevails where materials will react with water (cement, iron ores)

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Ore beneficiation or concentration Grinding


Grinding media and liners are consumables Grinding media


Balls forged from steel Cast balls, cylinders (cylpebs), truncated cones Steel rods (63 to 115 mm in diameter, up to 6 meters in length) Ball mills range from 25-100 mm in diameter SAG mills from 100 150 mm Tower, verti and stirred mills are 15-30 mm

Grinding balls

Grinding liners are custom made from high chromium white cast irons. Wear resistant but brittle (crack). Multiple segments for a complete set.
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Ore beneficiation or concentration Grinding

Central discharge rod mill

Tumbling mills have horizontal cylindrical shell with changeable inner liners. The cylinder rotates on trunnions are either end. Incoming materials continuously fed through one trunnion while the ground materials leave via the other trunnion or ports around the shell. Course fraction is returned to the mill this is called re-circulating load and can be up to 3 times

AG mill

Rod used for fine crusher or course grinder

Grate overflow ball mill

Ball usually final step. Give finder finished product


Hardinge mill balls segregated by size (matched to particles ground) Tube mills (high length to diameter ratio) Fully autogenous (AG) large diameter and low L/D ration (~0.5:1). Use tumbling w/o media. Ore grinds itself. Abrasion used. Semi-autogenous (SAG) ore self-grinding is enhanced by addition of some balls (large)
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Copper /gold SAG mill

Hardinge mill

Tube mill
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Ore beneficiation Milling


Dewatering

Thickener

Concentrate to Smelter / Market Electrolyte Filtration

Dryers Filters Flotation

Concentration Secondary Crushing

Water To Water Treatment Plant Separation

Tailings Pond

Conditioning Grinding Primary Crushing SAG / Ball Mill

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Ore beneficiation Leaching

Some ores can be extracted via a technique called leaching (example: bauxite (source of aluminum). The process includes

Primary crushing Secondary crushing Agglomeration curing Leaching by acid or alkaline solution to leach solution Solvent extraction Electro winning Electro refining Leachate regeneration Product to market
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Ore beneficiation Leaching


Solvent Extraction Electro winning

Leached Solution

Leaching

Secondary Crushing Agglomeration / Curing Water Pump Station

Product to Market

Primary Crushing

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Ore preparation
Ore preparation / dressing
(Screening, classification, pelletizing)

Screening Classification Pelletizing

To market

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Coal mining and processing

Coal is a soft rock found in large seams either just below the surface or at deeper sites

Coal breaker

Underground coal mine coal extracted through tunnels and shafts. Coal is broken into a size that is easily moved and stored
Long wall mining is a technique where about 200m of the coal face is mined at one time via a Anderton shearer that claws coal from the face and loads it into a conveyor After mining, processing is not as extensive as other mineral processing. Coal separated from rock using specific gravity and size and sometimes ground

Coal washing

Bradford coal breaker

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Coal mining and processing


Coal processing Substation

Underground or open pit mining

To market Stock piles

Processing
(breaker, washing, drying)

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Minerals processing for further refinement (Smelting and refining)

Pyro-metallurgy (smelting, refining, roasting): The next step is usually smelting which liberates metals form the concentrate - which means it happens above the melting point of the concentrate.

For oxide concentrates like iron ore, a carbon is added and the product is molten metal and slag. Sulfide oxides are also smelted, but an oxidant (air) is blown in to liberate copper, zinc lead and similar metals The molten metal is impure and at least another smelting process follows for further refining. Metals is then cast into billets, blooms, slabs, or other shapes.

Hydrometallurgical operation: Example: digestion of phosphate in producing phosphoric acid


Electrometallurgical operation: Electrolytic refining (copper & zinc)

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Energy efficiency

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Mining and energy efficiency

Mining industry uses 3% of industry energy in the U.S. making it # 6 in primary energy use, fuel and electricity use and onsite losses**

The mining industry is a large consumer of energy

South Africas Department of Minerals and Energy (DME) estimates the mining industry uses 6% of all energy consumed in South Africa Vale, mining giant in Brazil, is the single largest energy consumer accounting for around 4% of all energy used

In the U.S., it is calculated that the mining industry uses 3% of industry energy.
Energy cost is estimated to represent more than 15% of the total cost of production (USA) - yet still minimal focus on energy efficiency

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Source: *Cleantech magazine Fuel Cell Special, Sept/Oct 2010. **Energy Use and Loss Analysis, U.S. Manufacturing and Mining April 2004
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Mining and energy efficiency

According to the U.S. EPA, 400 mines operate 8,300 diesel powered vehicles creating greenhouse gas emissions and exposure to particulate matter.

Increasingly stringent government environmental policies

The industry is working to address sustainability issues such as carbon emissions, finite availability of resources, water quality Mines working on low emissions technology either directly or through funding research

Advanced management techniques and technologies are increasing productivity to permit exploration, extraction and processing to occur with minimal environmental impact
Mines considering power generation for their own mine distribution and use of renewables

Source: Cleantech magazine Fuel Cell Special, Sept/Oct 2010


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Mining and energy efficiency

Though energy is estimated at about 15% of cost of production (USA number, Cleantech magazine Fuel Cell Special, Sept/Oct 2010), little attention spent on EE Increase on EE due to global recession and decline in commodity prices or in regions where there is a shortage of energy (example: Mines in northern Chile have reduced power use to avoid introduction of rationing). Regulatory pressure is a stronger driver to mining companies to take action Governments, especially in countries with large mining sectors, are imposing standards for EE

Australias miners obliged to comply with the Equipment Energy Efficiency (E3) program for EE.

S Africa, The DME set a target in 2007 for mining industry to reduce energy demand by 15% by 2015. 32 S African mining and industrial companies have signed up on a voluntary basis

Source: Cleantech magazine Fuel Cell Special, Sept/Oct 2010


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Mining and energy efficiency

Energy efficiency offers the opportunity to

Reduce cost of production energy efficiency is a lowcost opportunity to enhance profits Reduce carbon emissions thereby supporting environmental concerns Improve productivity and availability as a byproduct of actions Maintain competitive position

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Mining and energy efficiency All mining activities require energy


Mining is a massive industry involving a diverse range of energy intensive processes Mining operations are often remote and require infrastructure such as building, water processing, rail, electrical (substations or on site generation) to be considered
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Exploration

Blasting
Drilling

Extraction Extraction
Digging

Ventilation Dewatering

Diesel

Materials Handling

Electric

Preparation, Beneficiation & Processing


Crushing Grinding Separation

Finished Product
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Mining and energy efficiency Mining industry energy sources


Electricity major energy source for underground mining for hoists and ventilation Majority energy source for surface mining is diesel for hauling Fuels such as diesel used for service trucks and hauling equipment, electricity for fans, drills, crushers, conveyors, etc.
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Type of energy used at a mine site will depend on the mine type (surface or underground) and processes used The exhibit shows energy used in mining industry for coal, metals (iron, lead, gold, zinc, copper) and minerals (phosphate, stone, sand, etc.) (U.S. example) Each mined product has a different recovery ratio which can significantly impact energy required per ton of product

Energy used in the U.S. Mining Industry


Electricity 32% Coal 10%

Gasoline 2% Natural Gas 22%

Diesel 34%

Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007

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Mining and energy efficiency Energy use by mining industry equipment


Ancillary Operations 6% Drilling 5%
Majority of electricity used in milling process

Separations 4%

Blasting 2%

Digging 6%

Ventilation 10% Grinding 40% Dewatering 2%

Materials handling Diesel Equip 17% Materials handling electric equip 4%

% Crushing 4%
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Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007

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Mining and energy efficiency Energy loss profile - motors represent 29% of onsite losses

Losses occur in equipment and distribution systems that are converting energy into work or supplying energy to process operations

Generic energy footprint and flow of energy losses

42% of the energy that enters the plant is lost prior to use in processes 62% of energy lost in energy conversion systems

Source: U.S. DOE, Energy Use and Loss Analysis April 2004
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Mining and energy efficiency Mining industry motor system loss profile

Almost 50% of the energy input for motor driven systems is lost through subcomponent inefficiency Materials processing systems can have inefficiencies as high as 90% Pump systems inefficiencies are considerable at 40% Highest motor system losses occur during energy conversion Fuel mix for motor systems is 82% electricity and 18% fuel

Losses ~40%

Source: U.S. DOE, Energy Use and Loss Analysis April 2004
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Grinding and diesel equipment for materials handling offer the greatest savings potential of 37%
Savings achieved by implementing best practices and new advances in R&D Incentives to innovate upstream becomes greater as processing plant becomes more tuned. Quality of feed becomes more important to meet productivity, emissions and quality targets

The study reports energy savings independent of each other. Improving savings in one area could increase savings in another. Study based on average energy use for a process, energy use by above average EE mines,

Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007
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Example mining industry energy saving opportunity

U.S. mining industry (excluding O&G) consumes ~ 1,246 Trillion Btu/year (TBtu/yr) DOE bandwidth analysis estimates that investments in state-of-the-art equipment and best practices could reduce energy use by over 50% TBtu/yr 258 TBtu/yr by implementing best practices Additional 409 TBtu/yr from R&D to improve mining technologies

~20%

~50% Potential to save a total of 667

CO2 emission reduction achievable from total practical energy savings estimated at 40.6 million tonnes

Study based on 8 commodities mined by the U.S. Coal Potash. soda ash & borate Iron Copper Lead & zinc Gold & silver Phosphate rock Limestone These commodities used to define average Btu/ton for coal, metals & industrial minerals.

Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007
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Mining energy efficiency opportunities

Estimated that 90% of electricity used for motor driven systems

Mining operations are typically remote and some processes are highly energy intensive. Rock crushing, drilling and grinding require considerable mechanical forces and subsequently large amounts of energy. Energy use increases as ore grade declines It is estimated that approximately 90% of the electricity for mining is used by motor driven systems such as fans, compressed air and pumps (Xenergy, 1998). A large portion of this is to drive fans for mine ventilation (Xenergy, 1997) Energy efficiency measure can also lead to non-energy benefits such as better equipment reliability, longer equipment life, reduction in maintenance costs and downtime and improved work environments (mine ventilation, lighting, etc.)
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Source: Energy Use, Loss and Opportunities Analysis: U.S. Manufacuturing and Mining
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Mining energy efficiency opportunities Exploration and extraction


Roughly one third of mining energy demand is in excavation (removal one half, haulage one fourth, and the rest for drilling, blasting and ventilation)** There is a bias towards energy efficiency improvements in processing versus mining After prospected materials found, advanced portion. Improved communications technologies can guide sophisticated blasting equipment to improve accuracy of mining thereby techniques have optimizing equipment and time use and allowing for remote energy efficiency effects control downstream

Non-invasive technologies such as remotely-operated sensors and ground-based technologies to minimize exploratory digging and drilling*

Advanced techniques for characterizing mineral content at exploration site* (reduce waste transport) Efficiency of separation or liberation at the mine face reduces waste

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Source: Multiple. *Energy Efficiency Guide for Colorado Businesses. **Energy & Sustainable Development in Mining and Minerals Industries Jan 2001). ABB Energy Consultancy studies. ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Extraction

Reduce handling of materials. Every movement of materials adds costs - reduce waste transported to processing facilities, investigate stockpile management Consider alternative materials handling solutions such as conveyor systems versus truck haulage where feasible may use less energy Large number of motors and pumps are used in excavation process (drilling, excavation and ventilation)*

Correctly size motors and pumps Select premium-efficiency units Employee variable speed drives in applications with highly varying load requirements and gearless drive systems (gearless mill drives; AC for shovels, drag lines, bucket wheel excavators, conveyors, hoists, etc.)
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Source: Multiple. *Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office. ABB Energy Consultancy studies
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Mining energy efficiency opportunities Extraction

Mine ventilation and cooling

Systems approach to mine ventilation that takes into account parameters from the point power enters the motor to required function. Ventilation system automation to constantly analyze requirements with smart sensors to determine air quality and adjusts flow (power supply, flow control devices, ducks, sensors / meters, high-efficiency motors and fans, variable speed drives). Additional benefit of improved power factor and reduce penalties. For cooling, consider moving air via insulated pipes and pumps to fan/coil heat exchanges located in the mine itself versus moving cool air from the surface to the underground mine via fans and ducts. The closed loop used to pipe chilled water takes advantage of gravity to move water into and out of the mine.*

Source:. *Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office. Increasing Energy Efficiency of Mine Ventilation Systems. multiple authors, Lawrence Berkeley National Laboratory, ABB Energy Consultancy studies

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Mining energy efficiency opportunities Extraction


Mining Registry Australia government registry of opportunities implemented

Refueling underground versus bringing trucks up top Use drives with regenerative capability when braking or downhill operation (hoisting, conveyors) Use spinning battery reserve on hoists reduce diesel operation required when reducing peak load of system*

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Mining energy efficiency opportunities Materials handling


For coal transportation accounts for 50 to 80 percent of the cost; therefore, transportation energy savings considered more important than mining

Large numbers of motors are used for moving and handling ore and other materials. Energy can be saved through

Proper sizing and maintenance of motor systems


Use of premium-efficiency motors Variable speed drives for applications with varying load requirements

Alternative materials handling systems including electric solutions versus diesel trucks / front-end loaders (conveyors, electric trucks)
Automated controls for optimizing materials handling adjustable conveyor speeds to ensure consistent optimum hauling loads (VSDs required) Remote control of automated hauling cycles employing sensors to identify fill, quality, etc. Optimization of start up process for conveyors
ABB Confidential - - Internal Use Only

ABB Group 1/14/2013

Source: Multiple. *Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office. ABB Energy Consultancy studies
| Slide 55

Mining energy efficiency opportunities Materials handling

Consider gearless drives for appropriate applications (longhaul conveyors)

Stockpile management reconfiguration of stockpile patterns / storage arrangement can reduce energy use. Consider loading areas and minimize re-piling
Use drives with regenerative capability when braking or downhill operation (hoisting, conveyors)

Optimize all loads. Reduce unloaded or wasteful fixed loads. Always fill to optimum capacity
Adjust conveyor speeds to optimize loading and unloading (w/ or w/o VSDs) Evaluate equipment used to load and unload perhaps mobile conveyor more cost effective to front-end loader Idle equipment when not in use

ABB Group 1/14/2013

Improve road conditions consider road traffic design Source: Multiple. *Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office. ABB Energy Consultancy studies
| Slide 56

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Preparation, beneficiation and processing


Rock crushing and grinding require large mechanical forces and therefore large amounts of energy

Large numbers of motors, pumps and blowers are used for moving, crushing, handling, fans and dewatering ore and other materials. Energy can be saved through*

Mining Registry Australia government registry of opportunities implemented**

Proper sizing and maintenance of motor systems Use of premium-efficiency motors Variable speed drives for applications with varying load requirements

Improved techniques for characterizing ore Preparation and processing proximity to mining (reduced materials transport energy use)

Consider gearless drive (ring-motor) for grinding with VSD where ore is various hardness allowing mill to slow when soft ore encountered**
ABB Confidential - - Internal Use Only

Preparation and beneficiation & processing (smelting, refining and coal preparation) smelting and refining not discussed

ABB Group 1/14/2013

Source: Multiple. *Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office, ABB Energy Consultancy studies
| Slide 57

Mining energy efficiency opportunities Preparation, beneficiation and processing

Remove scats (non-spherical ball fragments) that take energy but dont have enough energy to grind*

Centrifuge lowest energy use centrifuges


Flotation Consider most efficient motors, control systems, VSDs to vary air compressor speed, efficient mechanical impellers.** Only deliver air required to meet demand. Switch off when not in use. Prevent sump pumps running dry Leaching requires large volumes of electricity in the electro-winning process (electro-plating). Coal may be used to produce the steam to produce electricity. Opportunities for efficiency may include boiler optimization, improved air compressor flow control, regular maintenance for steam traps, variable speed drives for stack gas, air leak reduction programs, insulation for steam distribution, etc.

Preparation and beneficiation & processing (smelting, refining and coal preparation) smelting and refining not discussed

Source: Multiple. *Mining Registry (Australia Review), **Energy Efficiency Guide for Colorado Businesses. Colorado Governor's Energy Office, ABB Energy Consultancy studies
ABB Group 1/14/2013 | Slide 58

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Energy for water use


Water used for Mining Minerals conveyance Processing Optimized pump efficiency to reduce energy use

Most mines both consume and produce water. Energy is used to pump the water

Water used in mining for drilling, transportation ( materials slurried near mine and transported through pipeline suspended in water (size reduction facilities)), and processing (grinding, washing, separated via screening or other gravity separation). Water is also used to suppress dust when crushing and on hauling roads, etc.
Often water produced during exploration or operation and must be removed to prevent flooding and may need to be treated before discharge

Coal Mining: Water might be used for cooling the cutting surfaces of mining machinery (coal mining) and to inhibit frictioninduced ignition of coal fines or gas

Significant energy can be used to remove water due not only to amount but it must be lifted to the surface

Sometimes water must be imported or transferred as surplus mine water to treatment or discharge locations

ABB Group 1/14/2013

Source: Industrial Water Management: A Systems Approach, CH2M HILL for Center of Waste Reduction Technologies, American Institute of Chemical Engineering, ABB Energy Consultancy
| Slide 59

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Energy for water use


Any reduction in water use reduces energy use

Pumping one of the biggest uses of electric motors


Right size motors / pumps for water sources Replace motors with more efficient solutions Use VSDs to adjust pressure / flow to meet requirements (turn off when not needed) Other pump optimization measures (buy based on life cycle costs, maintenance programs, intelligent pump systems for multipumps)

Turn off water pumping equipment when idle Physically position machinery required for less distance pumping Consider reducing water to just meet requirements when possible: boiler water for steam generation, heat generation, flotation, to transport ore (coal) where possible

ABB Group 1/14/2013

Source: Industrial Water Management: A Systems Approach, CH2M HILL for Center of Waste Reduction Technologies, American Institute of Chemical Engineering, ABB Energy Consultancy
| Slide 60

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Energy for water use


Evaluate dewatering process to reduce energy needed Recover water when possible (condensate from air heater) Optimize steam use at air heaters Reduce water leakage (maintenance strategy)

ABB Group 1/14/2013

Source: Industrial Water Management: A Systems Approach, CH2M HILL for Center of Waste Reduction Technologies, American Institute of Chemical Engineering, ABB Energy Consultancy
| Slide 61

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities In general


Energy efficiency byproduct better designed processes, buildings, etc.

Invest in system to provide information on energy use so behaviors can be modified for efficiency, cost negotiated

Holistic approach: Energy management software for monitoring energy use throughout the plant and visualize reporting in real time
Install meters to provide energy use information identify what will be measured Integrate systems into other systems (EM with MES Manufacturing Execution Systems) Remotely monitor across multiple location to compare use, efficiencies

Reduce lighting costs with new lighting technologies, control systems including timers, sensors to turn off lights when not in use.
ABB Confidential - - Internal Use Only

Source: Mining Registry (Austrialia Review), Mining IQ, ABB Energy Consultancy studies
ABB Group 1/14/2013 | Slide 62

Mining energy efficiency opportunities In general

Optimized HVAC systems timers, variable speed drives, efficient fans, high efficiency motors Best practice training change behaviors educate team to look for energy efficiencies.

Procedural changes: example is to turn off light in pit once sufficient natural light. Consider total life cycle cost of energy use versus just initial costs

Invest in more efficiency technologies


Off-peak pressure reduction Optimal compressor scheduling, controls, generating pressure Leak repair strategies systematic ID and repair Variable speed drives vs mechanical solutions where applicable

Compressed air reduction (compressed air used for air drill)


Source: Mining Registry (Austrialia Review), Mining IQ, ABB Energy Consultancy studies
ABB Group 1/14/2013 | Slide 63

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities In general

Preventative maintenance practices also improving availability along with saving energy

Example: truck tire pressure management, steam trap maintenance / leak repairs, conveyor roller maintenance to reduce friction

Mine site electricity generation - reduce energy associated with use for transmission or transport (of fuels) Tune generic systems

Steam generators Onsite power systems

Fired heaters
Boilers steam leaks repaired, steam distribution insulation
ABB Confidential - - Internal Use Only

Source: Mining Registry (Austrialia Review), Mining IQ, ABB Energy Consultancy studies
ABB Group 1/14/2013 | Slide 64

Mining energy efficiency opportunities In general

Robotics as automation solutions to improve efficiency, improve productivity and increase safety

Power quality power factor correction to ensure operating within intended performance reduce reactive power use and charges
Second power line to UG mine decreased overall resistance through transmission lines and therefore losses were lower and power plant load reduced Consider using any heat generated by a process to be used for other requirements Consider peak electricity costs reduce loads during periods of high cost Institute an overall motor repair / replacement policy to ensure efficiencies (rewind vs high efficiency)
ABB Confidential - - Internal Use Only

Source: Mining Registry (Austrialia Review), Mining IQ, ABB Energy Consultancy studies
ABB Group 1/14/2013 | Slide 65

Mining energy efficiency opportunities In general

Implement an energy program with management and employees responsible for meeting energy goals

Develop a clear energy policy with KPIs and an identified leader and team
Clearly communicate energy policy Adapt techniques used in successful safety improvement programs to raise awareness and importance of energy efficiency Develop a process for bringing forward opportunities for energy savings

ABB Group 1/14/2013

| Slide 66

ABB Confidential - - Internal Use Only

Mining energy efficiency opportunities Summary

Invest in most efficient technology consider total life cycle costs (VSDs, high-efficiency motors, etc.)

Consider new blasting methods the reduce impact on mineral seam and reduce contamination - waste
Improve process controls, introduce equipment automation Improve hauling efficiencies consider alternative materials transport throughout mine, optimized stockpile management processes, location of process circuits Optimization of auxiliary systems: HVAC, water, lighting Mine automation intelligent software

Pit design and overburden management


Behavioral changes

Source: Multiple. ABB Energy Consultancy studies


ABB Group 1/14/2013 | Slide 67

ABB Confidential - - Internal Use Only

ABB energy efficiency solutions

See Value Proposition slide presentation for details

ABB Group 1/14/2013

| Slide 68

ABB Confidential - - Internal Use Only

ABBs approach to energy efficiency Doing more while lowering costs and emissions
ABB has technologies for the entire energy value chain to squeeze the most value from each unit of energy used
ABB contributes to energy efficiency improvements in two ways: Specialist Equipment, systems & solutions

Technologies

Energy efficiency solutions

By reducing energy losses, ABB technologies mitigate demand for new power generation, make better use of natural resources, and help make industries more efficient and competitive.

ABB Group January 14, 2013 | Slide 69 69 | Slide

ABB Confidential - - Internal Use Only

ABB the company

Energy efficiency solutions aligned with mining productivity and profitability objectives

Manageable, measurable improvement programs

ABB Energy Solutions services

Understanding how and where you use energy, decision support


Increasing motor energy efficiency while reducing maintenance wear and downtime

cpmPlus Energy Manager for industry

Variable speed drives and premiumefficiency motors systems for underground and open pit mining, ventilation, materials transport, materials crushing and grinding and auxiliary systems ( fans, water pumps, compressors, etc.)

ABB Group January 14, 2013 | Slide 70 70 | Slide

ABB Confidential - - Internal Use Only

Energy efficiency solutions aligned with mining productivity and profitability objectives

Improving efficiency and reducing costs associated with underground air handling Underground materials transport systems that increases capacity, improves air quality, and reduces energy requirements Enhanced energy efficiency for underground materials handling systems while boosting capacity and productivity

Underground mine ventilation

Electric truck electrical systems

Hoists with regenerative braking and energy storage systems to use energy efficiently and reduce peak impact on network. Services to upgrade to AC drive system

ABB Group January 14, 2013 | Slide 71 71 | Slide

ABB Confidential - - Internal Use Only

Energy efficiency solutions aligned with mining productivity and profitability objectives

Improving productivity and energy efficiency of conveyor systems

AC drives and premium-efficiency motors, Active Front End to recover braking energy Integrated electrification and automation Optimized conveyor load / Inverse Start Route systems Gearless drive alternative Gearless mill drives Ring-geared mill drives Drives for high-pressure grinding rolls

Lower energy requirements for materials preparation

ABB Group January 14, 2013 | Slide 72 72 | Slide

ABB Confidential - - Internal Use Only

Energy efficiency solutions aligned with mining productivity and profitability objectives

Increasing availability and efficiency of mining assets such as shovels and drag lines

AC drives for energy efficiency, excellent power quality and better control of current and torque

Optimized electrification of plant / mine integrated with automated processes

Integrated process control and automation, drive and electrical systems. Substation automation integration

ABB Group January 14, 2013 | Slide 73 73 | Slide

ABB Confidential - - Internal Use Only

Solutions that are aligned with your mining processes and energy efficiency objectives

Improve reactive power compensation and power factor correction Lower total cost of ownership and improve efficiency of transformers (large load or low load losses) Energy efficiency enablers

Site assessment services and solutions such as active filters, capacitors for power factor Low loss green distribution transformers

Measurement products, emergency power supply / UPS, gas insulated switchgear, substations Shovel and dragline retrofit services Lifecycle services Engineering services Full Service

Services

ABB Group January 14, 2013 | Slide 74 74 | Slide

ABB Confidential - - Internal Use Only

Solutions that are aligned with your mining processes and energy efficiency objectives
Related solutions for mining operations

Mines are often remotely located and require infrastructure for power generation and materials transport such as rail. Water is also a limited resource required for multiple mining operations as well as removal or transference ABB offers energy efficiency expertise and products associated with power generation, transportation, water usage and building automation energy efficiencies. Efficient management of water resources used for mining processes or requiring removal or transference On-site power generation Site assessment services including pump system optimization

Power generation assessment services and energy efficient products

| Slide 75

ABB Confidential - - Internal Use Only

Solutions that are aligned with your mining processes and energy efficiency objectives
Related solutions for mining operations

Rail infrastructure and rolling stock efficiencies

Turbochargers to boost performance of diesel engines to regenerative braking systems and efficient grid to railway power efficiency solutions i-Bus KNX automation systems for monitoring and control of lighting, HVAC, etc.* High-power electrical port connections (turn off ship diesel engines) and coal terminal and general stockpile management
*Not available in the Americas

Energy efficient buildings and facilities

Energy efficient port / ship power management that reduces air and noise pollution. Coal terminal electrification / automation optimization

| Slide 76

ABB Confidential - - Internal Use Only

Go-to-market strategy

Target offerings Key messages Target market / audience Obstacles to sales Sales strategy concept

What Who How

Marketing materials

ABB Group 1/14/2013

| Slide 77

ABB Confidential - - Internal Use Only

Target offerings

ABB will lead with the following energy efficiency offerings

What Who How

Services ABB Energy Solutions to accelerate energy savings including performance-based contracting
1. 2.

Software

cmpPlus Energy Manager

3.

ABB product / solutions

ABB Group 1/14/2013

| Slide 78

ABB Confidential - - Internal Use Only

Key messages

There is a global need for energy efficiency

Global energy use predicted to increase by 96% by 2035 compared to 2008 levels The IEA estimates that energy efficiency measures can deliver half of the cuts in emission that are needed over the next 25 years

What Who How

In a 2011 global survey by the Economist Intelligence Unit, almost 90% of manufacturers said that improvements in their energy efficiency will be critical for business success in the next two decades The mining industry faces a number of challenges from higher costs of doing business, fiscal governmental policy becoming increasingly unpredictable, the advent of carbon emission penalties, commodity price volatility, and the struggle to bring new mines online on time and within budget, to increased requirement for infrastructure capital expenditures due to remote location of mines

| Slide 79

ABB Confidential - - Internal Use Only

Key messages

Energy efficiency is one way to help combat some of the challenges

Energy efficiency

What Who How

Decreases operational costs Reduces greenhouse gas emissions Improves productivity Makes the mine site more sustainable And - results in improved competitiveness

Improving energy efficiency worldwide is the fastest, the most sustainable and the cheapest way to reduce greenhouse gas emissions and enhance energy security. (Final statement of G-8 summit, Germany, June 2007)

| Slide 80

ABB Confidential - - Internal Use Only

Key messages

ABB has been in the energy business for over 120 years and pioneered many innovations such as HVDC, variable speed drives and gearless mill drives ABB has the experience and tools for helping customers implement energy efficiency solutions along with the success stories

What Who How

ABB Group 1/14/2013

| Slide 81

ABB Confidential - - Internal Use Only

Target market

Target market

Mining installations

Top mining countries Key countries with BU Minerals and GAM / SAM coverage

What Who

How

#1 brown fields, #2 green fields

Primary target

As high up as possible CEO, CFO, CTO, Energy Officer Mine manager Mine superintendent or process superintendent Environmental officer Business improvement officer

ABB Group 1/14/2013

| Slide 82

ABB Confidential - - Internal Use Only

Target market: decision makers at mine site

What Who How

Source: Australian Government: Department of Energy and Tourism. Driving EE in the Mining Sector: The Business Case and Beyond
ABB Group 1/14/2013 | Slide 83

ABB Confidential - - Internal Use Only

Common obstacles to promoting and bringing energy efficiency awareness in mining companies

What Who How

There are many obstacles to implementing energy efficiency in the mining industry due to historically low energy market prices, focus on rapid expansion of production driven by market demand, and fear that energy efficiency projects are expensive and impact productivity - or that they are often small scale and discretionary in nature

No one size fits all solution to the energy challenge


Each mine site requires a different approach

ABB Group 1/14/2013

| Slide 84

ABB Confidential - - Internal Use Only

Common obstacles to promoting and bringing energy efficiency awareness in mining companies

Management is not always up to date on business implications of energy use including

What Who How

Strong trend toward increasing electricity and diesel fuel prices - which continue to fluctuate. Increased production opportunity in energy efficiency projects along with the substantial impact on operating costs

Potential energy supply issues at many site Compliance requirements

May not have good information on energy efficiency projects need cost and benefits analysis including financial or operational risks identified. Need to link broader benefits projects must achieve important business priorities

EE projects can be identified through assessments but need skilled support in particular technologies for implementation
Robust financial analysis required along with the right expertise to complete projects ABB Confidential - - Internal Use Only

Source: Patrick Crittenden presenting at Mining IOs Energy Efficiency in Mining 2011 Australia
ABB Group 1/14/2013 | Slide 85

Gaining mining management support

Know the business align energy efficiency business case with core business objectives

What

Link benefits of energy efficiency projects to production benefits, cost containment and maintaining safe working conditions
Understand customer interests so you can promote energy efficiency as helping to achieve their goals

Who How

Understand who makes decisions and target communications on how project supports their role, interest or understanding of the issues

Talk to site financial officer to find out current investment policies. Make sure the financial officer is aware of energy issues and costs and potential price increases in the future

Enlist the business improvement managers by discussion potential energy efficiency projects and relating to productivity and other business improvement priorities

Source: Patrick Crittenden presenting at Mining IOs Energy Efficiency in Mining 2011 Australia
ABB Group 1/14/2013 | Slide 86

ABB Confidential - - Internal Use Only

Sales strategy concept

Enlist BU Minerals team to expand share of wallet with mining customers and make introductions for EE solutions offered not only in PAMI but other divisions take a systems approach Leverage ABB Energy Solutions HUBS Work with the ABB Energy Solutions (PASV) team to identify opportunities for conducting EE assessments that will pull through other ABB solutions Work with EE Champions in key countries to pull together team to focus on Mining Industry

What Who How

Employ GAMs, SAMs, BU Minerals to identify targets and introduce team to key accounts

ABB Group 1/14/2013

| Slide 87

ABB Confidential - - Internal Use Only

Sales strategy concept

Team up with DM motor/drive assessment team

BU Minerals focused on mining assets (shovels, conveyors, grinding solutions) many other motor / drive auxiliary systems to consider Capability to assess auxiliary systems available in more countries

What Who How


BU Minerals team locations

BU Minerals organization
GAMs

Cluster leader John Olsen Anglo American Per Wanland

Rio Tinto Alain Zagouri


Vale Roberto Held BHP Billiton Regina Roos
ABB Confidential - - Internal Use Only

ABB Group 1/14/2013

| Slide 88

Marketing materials

Training materials

Mining industry process Mining industry market / trends Mining industry energy efficiency opportunities ABB energy efficiency solutions

What Who How

Key messages / target audiences / sales strategy concept


Marketing materials

ABB Group 1/14/2013

| Slide 89

ABB Confidential - - Internal Use Only

Marketing materials

Marketing / sales support materials

Presentations

Mining Energy Efficiency Value Proposition ABB Overview (Complete) ABB Overview (Summary) Energy Efficiency Trends

What Who How

ABB Sustainability Story


ABB Success Stories

Flyer Summary of Mining Value Proposition (2-pager) Group EE Overview Brochure EE Trends Reference Document Web portal to hold content

ABB Group 1/14/2013

| Slide 90

ABB Confidential - - Internal Use Only

Marketing materials

Print-on-demand pieces

ABB Energy Solutions for the Mining Industry (consultancy) cpmPlus Energy Manager Conveyor Systems (Materials Handling PAMI)

What Who How

Underground Mine Ventilation (in development PAMI)


Underground Hoists (in development PAMI) Underground Mine in General (in development PAMI) Boiler Fingerprint

LV Soft Starters
LV Contactors Baldor Cooling Tower Motor & Drive Assessments
ABB Confidential - - Internal Use Only

ABB Group 1/14/2013

| Slide 91

Marketing materials

Print-on-demand pieces

Full Service Instrumentation / Measurement Products Power Generation Energy Efficiency Assessments Success stories

What Who How

Pea Colorado Iron Ore Variable Speed Drives Dragline Retrofit Mine Hoist Grid Reliability Vigier Cement Conveyer

Brochures

Sustainability in Mining Efficiency in Mining Motor Driven Systems


ABB Confidential - - Internal Use Only

ABB Group 1/14/2013

| Slide 92

Marketing materials

Key messages Elevator pitch Clip art images Roll up and poster templates

What Who How

All items available as InDesign file for local translation or a high resolution, print ready PDF

Materials for local workshops


Informational presentation (processes, market, etc.) Flash stick with files

Target account list + BU ABB contact information (provided by country EE champion)

ABB Group 1/14/2013

| Slide 93

ABB Confidential - - Internal Use Only

Level 1 overview roll up banners

ABB Confidential - - Internal Use Only

Level 2 informational banners

ABB Confidential - - Internal Use Only

Level 3 informational poster

Marketing materials Portal links

External portal on energy efficiency

www.abb.com/energyefficiency

Inside ABB portal

What Who How

http://inside.abb.com/cawp/db0003db004341/ccbbd25c30a117b3c12578ed005 6a851.aspx?

Mining portal

http://inside.abb.com/cawp/db0003db004341/f1644a689e2bb820c1257a64004 60cca.aspx Auto portal http://inside.abb.com/cawp/db0003db004341/21b3396087dc487ec125790500 2db1cf.aspx

Iron and Steel portal

http://inside.abb.com/cawp/db0003db004341/94ff432377791fc6c12579bb0035 bd30.aspx

Trends report

http://www.abb.com/cawp/gad02465/b9225505ced8f7d7c1257853004a7a00.a spx?
ABB Group 1/14/2013

| Slide 97

ABB Confidential - - Internal Use Only

ABB Group January 14, 2013 | Slide 98

Appendix

ABB Group January 14, 2013 | Slide 99

Mining ranks 6th in primary energy use, fuel and electricity use and onside losses in the U.S.
Direct use of purchased energy. Top six industrial consumers in the U.S. Mining energy use impact varies by country. Comparison numbers are hard to acquire. South Africa mining is estimated to use 25% of the electricity

Mining

Source: U.S. DOE, Energy Use and Loss Analysis April 2004
ABB Group January 14, 2013 | Slide 100

Generic energy footprint

Source: U.S. DOE, Energy Use and Loss Analysis April 2004
ABB Group January 14, 2013 | Slide 101

Flow of energy losses

Source: U.S. DOE, Energy Use and Loss Analysis April 2004
ABB Group January 14, 2013 | Slide 102

Results of DOE mining study

Best practice energy use based on various reports of topperforming mining equipment

Theoretical minimum energy minimum energy needed to complete a process in the absence of energy losses to heat, etc.
Practical Minimum Considered closest approach to the theoretical limit allowed by implementing best practices and technologies developed by ongoing R&D. This is a moving target since science and technology continue to improve energy efficiency Factors in electricity generation losses in analysis employed the tacit energy consumption values, i.e., energy used onsite plus the energy lost in generating and distributing the energy instead of onsite consumption. One Btu of electricity onsite requires a total energy use of 3.17 Btu. Conversely, saving 1 Btu translates to saving 3.17 Btu

Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007
ABB Group January 14, 2013 | Slide 103

Mining industry energy savings opportunities

Source: U.S. DOE Industrial Technologies Program Mining Industry Energy Bandwidth Study, 2007
ABB Group January 14, 2013 | Slide 104

Go-to-market materials Success stories (1 of 2)

Industrial Energy Efficiency assessments


Ore processing plant / electro-winning process Iron ore mine Coal mine Performance guarantee Conceptual design analysis

Modernization of coal mine fan station Mine ventilation automation system Modernization of copper mine

Variable speed drives for grinding mill


Variable speed drives for iron ore pellet cooling fan Hoist upgrade

Go-to-market materials Success stories (2 of 2)


Dragline retrofit Conveyor regenerative power Shovel upgrade Optimized bucket wheel excavator Variable speed drives for high pressure grinding rolls (HPGR) Belts Conveyor automation, motors, variable speed drives Integrated electrification and automation of coal plant cpmPlus Energy Manager

i-Bus KNX building automation system


Optimized boiler operation

Global Business Unit Minerals Represented around the world

Business Unit Minerals headquarters


ABB Group January 14, 2013 | Slide 107

Business Unit Minerals Organization chart


Management Team Local Business Units Main Technology Centers

Head of global Business Unit Minerals Giuseppe Di Marco Assistant Carla C. Castillo Marketing Communications Marion Hug

CFO Satish Kolala

Supply Chain Domenico Chieffo

Technology Clive Colbert

Operational Excellence Markus Ahrens

Electrical, Control & Instrumentation Systems Andre Inserra

Material Handling & Grinding Marcelo Schumacker

Underground Mining Remy M. Lanoue

Service Marici Santos

North America Gabriel Azeroual Mexico Fernando Cantu Brazil Renato Finoti Peru Adolfo Samaniego

Argentina

Sweden Andreas Malmport Poland Jacek Dziezak

Egypt Nour Nassar Saudi Arabia George Kuruvilla Oman Sanjay Jog Kazakhstan Anuar Sakharkhanov South Africa Max Luedtke

India

Indonesia tba Australia Andy Kostiono

Pablo Perez Esmoris


Spain Jos L. Caballero Switzerland Marcelo Schumacker a.i. Germany

Amogh Nawathe
China Stephen-JiHao Zhu Thailand Kitti Kangwalklai Vietnam JianPeng Fu Malaysia Mohan-Raj Paranjothy

Baltic States
Leho Kuusk Serbia tba Greece Yannis Happas

Peter Mhlbach
Norway Roger Nilsen

Chile
Gerardo Mendoza

Status: January 01, 2012

ABB Group January 14, 2013 | Slide 108

BU Minerals Service Product group global service team


Global PG Service
Marici dos Santos

Material handling services

Grinding solutions services

Cement plants services

Minerals plants services

Underground mining services

Eduardo Botelho

Jari Koponen

HansHelmuth Jung

Barbara Obrist

Bengt Hedlund

PG MH&G
(Material handling and grinding)

PG ECIS
(Electrical, control & instrumentation systems)

PG UGM
(Underground mining)

ABB Group January 14, 2013 | Slide 109

PAMI conveyor team

ABB Group January 14, 2013 | Slide 110

ABBs industrial plants solutions Portfolio


Engineering, Supply, Construction, Management, Service
Power Distribution
Overhead transmission lines HVsubstation MV/LV switchgear Transformers

Drives
MV motors
LV motors Variable speed drives Multi-drives

Automation
Process control Knowledge Manager Optimization packages Instrumentation

c Infrastructure
Cabling Grounding / Lightning protection Containerized e-room Lighting Ventilation air-condition Communication

Services
Installation Supervision of installation Training of personnel Commissioning Operations assistance Life cycle support

DC power
Emergency power
ABB Group January 14, 2013 | Slide 111

Rectifiers
Power factor correction

MCCs
Application software

ABB Group January 14, 2013 | Slide 112