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Sun Metals Corporation Pty Ltd
Energy Efficiency Opportunities
Annual Public Report
December 2009
 
 
Period to which this report relates
Start  1 January 2008 End  30 June 2009
 
Part 1 - Information on assessments completed to date
 Table 1.1 - Description of the way in which the Corporate Group (or part of it) has carried out its assessments


 Since the completion of detailed workshops and assessments conducted in 2008 as part of 'Energy Efficiency Opportunities' the process  of evaluation of many of the ideas, as identified and prioritised, has continued. Implementation of various energy efficiency projects  commenced at the end of 2008 and has continued throughout 2009, where the projects have been considered of benefit to the business.

 EEO objectives were incorporated into the Health Safety, Environment and Quality Policy and Energy Efficiency Objectives incorporated  into the SMC Operations Annual Plan leading to reporting in the Quarterly Management Review to the Board.

 Key energy efficiency indicators with respect to production levels have been clearly identified and are reported on monthly in the  company's monthly report which is distributed to all Senior and Area Managers.

 Energy mass balances for each of the process areas, Roasting & Sulphuric Acid, Leaching & Purification, Electrolysis and Casting were  further developed to about 60% completion. The process of developing these energy mass balances has helped to improve understanding  of energy use, identify areas where energy may be saved, and promote and support discussion about potential opportunities.

 Communication of energy efficiency indicators, savings and opportunities has occurred through awareness sessions, training days and  communication briefs. These have proved valuable for raising energy efficiency across the business.

 The assessments conducted in the first reporting period have resulted in the implementation of several projects in different areas of the  Refinery. The energy efficiency projects have been viewed as wise business practice, especially during a period of such global economic  uncertainty. Energy efficiency considerations are being incorporated more into existing business improvement and approval processes.

 Budget provisions have been made for projects in the coming year.
 
 Table 1.2 - Energy use assessed
 Group member and/or business unit and/or key  activity and/or site that has had an assessment  completed by the end of this reporting period.      Period over which assessment was      undertaken1  Energy use per annum in GJ2  in the current reporting year
 Roasting and Sulphuric Acid      May to November 2008 690,000  
 Leaching and Purification      May to November 2008 1,118,000  
 Electrolysis      May to November 2008 2,601,000  
 Casting      May to November 2008 181,000  
 Other Services      May to November 2008 16,000  
 Total energy assessed 4,606,000  
 Total energy use of the group in the current reporting year 4,606,000  
 Total energy assessed expressed as a percentage of total current energy use 100%  
 
 1. This should be the start and finish date (month and year) for the assessment (planned assessment dates were nominated in Table 3.1 of the approved ARS).
 2. Energy Bandwidth may only be used if approved in the Assessment and Reporting Schedule.
 
 
Part 2 - Energy Efficiency Opportunities that have been identified and evaluated
Part 2B - Update of assessments originally reported in previous reporting periods
Name of Group member or business unit or key activity or site:     ROASTING & SULPHURIC ACID     
 
Energy use of the entity during the current reporting period 690,000 GJ
 
 Table 2.3 - Opportunities assessed to an accuracy of กพ30% or better
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  2  479    175  654
 Business  Response*  Under Investigation          
 To be Implemented          
 Implementation Commenced          
 Implemented  1  479      479
 Not to be Implemented  1      175  175
 
 Table 2.4 - Opportunities assessed to an accuracy of worse than กพ30%
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  18  9,645  31  95  9,771
 Business  Response*  Under Investigation  13  8,261  31  22  8,314
 To be Implemented          
 Implementation Commenced          
 Implemented  3  1,384    73  1,457
 Not to be Implemented  2        
 
 
Name of Group member or business unit or key activity or site:     LEACHING & PURIFICATION     
 
Energy use of the entity during the current reporting period 1,118,000 GJ
 
 Table 2.3 - Opportunities assessed to an accuracy of กพ30% or better
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  3  1,886  950    2,836
 Business  Response*  Under Investigation  1    950    950
 To be Implemented  1  947      947
 Implementation Commenced          
 Implemented  1  939      939
 Not to be Implemented          
 
 Table 2.4 - Opportunities assessed to an accuracy of worse than กพ30%
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  19  3,803    13  3,816
 Business  Response*  Under Investigation  17  2,559      2,559
 To be Implemented          
 Implementation Commenced          
 Implemented  2  1,244    13  1,257
 Not to be Implemented          
 
 
Name of Group member or business unit or key activity or site:     ELECTROLYSIS     
 
Energy use of the entity during the current reporting period 2,601,000 GJ
 
 Table 2.3 - Opportunities assessed to an accuracy of กพ30% or better
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  2    75,636    75,636
 Business  Response*  Under Investigation  2    75,636    75,636
 To be Implemented          
 Implementation Commenced          
 Implemented          
 Not to be Implemented          
 
 Table 2.4 - Opportunities assessed to an accuracy of worse than กพ30%
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  8  3,780  28,980    32,760
 Business  Response*  Under Investigation  8  3,780  28,980    32,760
 To be Implemented          
 Implementation Commenced          
 Implemented          
 Not to be Implemented          
 
 
Name of Group member or business unit or key activity or site:     CASTING     
 
Energy use of the entity during the current reporting period 181,000 GJ
 
 Table 2.3 - Opportunities assessed to an accuracy of กพ30% or better
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  6  3,241    713  3,954
 Business  Response*  Under Investigation  2  841      841
 To be Implemented          
 Implementation Commenced          
 Implemented  3  2,400      2,400
 Not to be Implemented  1      713  713
 
 Table 2.4 - Opportunities assessed to an accuracy of worse than กพ30%
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  15  412      412
 Business  Response*  Under Investigation  13  64      64
 To be Implemented  2  348      348
 Implementation Commenced          
 Implemented          
 Not to be Implemented          
 
 
Name of Group member or business unit or key activity or site:     OTHER SERVICES     
 
Energy use of the entity during the current reporting period 16,000 GJ
 
 Table 2.3 - Opportunities assessed to an accuracy of กพ30% or better
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  3  65  1,521  1,070  2,656
 Business  Response*  Under Investigation          
 To be Implemented          
 Implementation Commenced          
 Implemented  3  65  1,521  1,070  2,656
 Not to be Implemented          
 
 Table 2.4 - Opportunities assessed to an accuracy of worse than กพ30%
   Status of opportunities identified  Number of opportunities  Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
0 - < 2 years 2 - ≤ 4 years > 4 years
 Outcomes of  assessment*  Total Identified  5  936      936
 Business  Response*  Under Investigation  4        
 To be Implemented  1  936      936
 Implementation Commenced          
 Implemented          
 Not to be Implemented          
 
 
Part 2 - Energy Efficiency Opportunities that have been identified and evaluated
Part 2C - Details of at least three significant opportunities found through EEO assessments
 
 Table 2.5 - Description of 3 significant opportunities
 Opportunity 1

 In the Utilities area of the refinery, 11 water cooling towers operate. Hot water from heat exchangers is sent to the cooling towers in a  closed circuit. The water exits the cooling tower and is sent back to heat exchangers or to other units for further cooling. The 11 cooling  towers cool the circulating water to 28 degrees C. Below this temperature some of the fans may be switched off. This switching on and  off of towers was controlled manually until recent modifications to the circuit and control logic made it possible to inter-lock cooling tower  fan operation with cooling water temperature. When the temperature drops below a set point one of the towers is switched off  immediately, if the temperature continues to drop a second tower is switched off. The reverse is applied as the cooling water temperature  increases. It is estimated that by operating with this automated control, two of the towers are switched off for 3 hours more each day  than previously.
 Power consumption of the 75kW fan motors was significantly reduced, the total energy saving is 170MWh per year which equates to 177  tonnes of green house gas emissions saved.
 Opportunity 2

 The Electrical Maintenance Department investigated replacement of existing standard motors used on site with 'high efficiency' motors.  For example a 55kW high efficiency motor operating under normal circumstances in the refinery represents a power saving of 15.1MWh  over a one year period, compared to a standard motor. The decision was made to replace Warehouse inventory of standard motors with  high efficiency motors when ordering new equipment.
 It is estimated that at least 15 motors will be replaced during the next 12 months, of sizes varying from 15kW to 150kW, equal to a  saving of 260MWh of power consumption and 270 tonnes of greenhouse gas emissions.
 Opportunity 3

 Zinc concentrate is converted to zinc calcine by burning of the concentrate in fluid bed roasters. Zinc calcine (ZnO), produced by burning  the sulphide concentrates with air direct oxygen addition, is the soluble zinc form which is the primary feed for the Leaching Plant. The  roasters operate at about 950°C, at this temperature the roasting reaction sustains itself, generating enough heat for the reaction to  proceed without additional heat supply. However, when a roaster is shutdown and has cooled, it requires heat supply to start the reaction  again. This heat is supplied by diesel burners which heat the roaster bed until the temperature has reached a point at which the reaction  can once again proceed of its own accord.
 Fuel supply to the burners during this start-up period is controlled by a flame detection system. Recent modifications to the system  include a different type of flame detector which is more sensitive. The previous less-sensitive detectors would often not detect the flame  during start-up resulting in a 'flame out' and loss of heat from the roaster bed. The new detectors have resulted in better control of diesel  flow to the burners, fewer occasions when the flame goes out and consequently reduced the diesel consumption required on start-up.
 By tracking diesel consumption and heat-up times, it is estimated that the diesel burner's efficiency is improved by 5% following the  modifications. Equivalent to a saving of 20,000L of diesel consumption per year and 58 tonnes of greenhouse gas emissions.
 Opportunity 4

 Upon review of lighting requirements by the Roasting Department it was determined that savings could be achieved by installation of local  control switches in the train wagon unloading area. In this area there are 119 lights ranging from 72W to 400W. The area is mostly  underground and as such the lights must be on whenever trains are being unloaded and people are working in the area. Previously the  lights were on at all times. However now in conjunction with standard operating procedures for the area, the lights are switched off  whenever there are no trains being unloaded or people in the area.
 Savings made possible by this lighting modification are equal to 133MWh per year of power consumption and 138 tonnes of greenhouse  gas emissions.
 
 
Part 4 - Declaration
 
 Table 4.1 - Declaration of accuracy and compliance (mandatory information)

 The information included in this report has been reviewed and noted by the  board of directors and is to the best of my knowledge, correct and in  accordance with the Energy Efficiency Opportunities Act 2006 and Energy  Efficiency Opportunities Regulations 2006.
 CEO