Abstract
Quebec Iron Ore (QIO), a subsidiary of Champion Iron Limited (Champion), is an established producer of high-grade hematite concentrate since the restart of operations of the Bloom Lake mine in 2018. It has committed to greenhouse gas emissions reduction of 40% by 2030, based on 2014 emission intensity and taking into consideration the targeted nameplate capacity of 15Mtpa. The company is also committed to be carbon neutral by 2050. Reaching a low carbon-footprint in Scope 1 and 2 categories is a high priority in QIO’s agenda. But how can decarbonization initiatives be implemented within a mining operation, where GHG reduction projects compete with operational needs and growth projects on capital demand? On top of these imperatives, implementing a low-carbon transition with many uncertainties will require testing different emerging technologies in energy efficiency and electrification.
The presentation describes QIO’s decarbonisation plan and the portfolio of selected projects. In addition, it will explain the flexible strategy development process used, that allowed to reveal of unanticipated opportunities which arose from problems and limitations. Electrical haul truck technology will likely not be deployed before 2030 has highlighted the advantages of energy efficiency solutions in the short-term. The optimization of engine combustion, the haul roads and waste dumps redesign are examples of this new orientation. In addition, the limitation of the grid electrical power has imposed to reassess the portfolio’s electrification projects.QIO’s second pole of GHG emissions being the production of process steam, energy recovery projects have been put in place to reduce the quantity of steam required.
A holistic interdepartmental approach within the mining operation has been shown as keen to provide maximal flexibility to close the performance gap between the actual mining operations and the low-carbon and energy efficiency initiatives. Some projects may appear beneficial for one aspect of the process but deleterious to the energy balance of the whole operation, as in the optimization of pan filters. Optimizing the quality of feed to mill grinders is also a double-edged sword if improving its quality involves reducing its variability, which would be done at the expense of the extraction operations.
Finally, project feasibility in mine operations is based on reduction of mining costs and high return on investment, but greenhouse gas reduction projects cannot compete with projects that have been designed expressly to meet this profit formula. At QIO, the use of the marginal abatement cost of initiatives, combined to an internal carbon pricing linked to the cap-and-trade system could be an effective incentive to access capital.