EEO Reports

Sun Metals Corporation

EEO PUBLIC REPORT 2012

Part 1 - Corporation Details

Controlling Corporation : Sun Metals Corporation Pty Ltd


Table 1.1 - Major Changes to Corporate Group Structure or Operations

Table 1.1 - Major Changes to Corporate Group Structure or Operations in the last 12 months
There have been no major changes to the Corporate Group Structure or Operations during the last 12 months.

Declaration

Declaration of accuracy and compliance
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.
Young Min Park
(CEO & President)
Date  28 Dec. 2012

Part 2 - Assessment Outcomes

Table 2.1 - Assessment Details

Name of entity : Sun Metals Corporation Pty Ltd

Total energy use in the last financial year 3,153,273 GJ
**Total energy use in the last financial year including steam 4,527,533 GJ
Total percentage of energy use assessed when assessments were undertaken 100 %

** Steam is generated on-site as a by-product of roasting zinc concentrate. There is virtually no greenhouse gas emission as a result.     The energy content of steam has been included with total energy for this report so it can be compared with previous reports.


Description of the way in which the entity carried out its assessment

Since conducting detailed assessments in 2008 as part of the ‘Energy Efficiency Opportunities’ program, the process of evaluation of opportunities, as identified and prioritised, has continued. Energy Efficiency Projects have been implemented where the business case demonstrated a clear and sustainable benefit to the business.

The identification, assessment and of implementation of energy efficiency projects involved staff from all levels within the organisation and external consultants.

Energy assessment and improvement has become part of Sun Metals’ operation, being included in our HSEQ policy, operational plans and area budgets. Sun Metals has made available all process area superintendants, process coordinators, and team leaders with assistance from the Technical Services department to conduct EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

Sun Metals has experienced a challenging recent few years due to the global financial crisis. In 2012 Sun Metals invested approximately $20 million in projects that significantly improve energy efficiency and operating cost efficiency. Operating in an energy efficient manner and seeking to implement energy efficiency projects is viewed as smart business at Sun Metals.

Table 2.2A - Opportunities assessed to an accuracy of better than (≤) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 8 3 909 4 87,494 1 394 88,797
To be Implemented 1 0 0 0 0 1 34 34
Implemented 13 10 94,443 2 205,677 1 1,070 301,190
Not to be Implemented 7 0 0 0 0 7 3,116 3,116
Outcomes of assessment Total Identified 29 13 95,352 6 293,171 10 4,614 393,137
Table 2.2B - Opportunities assessed to an accuracy of worse than (>) ±30%
> ±30% Number
of opportunities
Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 37 6 16,351 1 3,600 1 22 19,973
To be Implemented 4 4 1,699 0 0 0 0 1,699
Implemented 10 7 69,987 0 0 2 87 70,074
Not to be Implemented 3 0 0 0 0 1 101 101
Outcomes of assessment Total Identified 54 17 88,037 1 3,600 4 210 91,847

Table 2.3 - Details of significant opportunities identified in the assessment

Corporate Groups are required to provide at least 3 examples of significant opportunities for improving the energy efficiency of the group that have been identified in assessments.

Description of Opportunity No 1 Voluntary Information

In the process of ‘roasting’ zinc concentrates, steam is generated as a by-product from waste heat boilers that cool the off gas stream, and cooling coils that run through the bed of the roasters and help to maintain the roaster temperature. This steam is ‘clean energy’ generated with virtually no greenhouse gas emission.

Construction of a 7.6MW steam turbine generator was finalized in September 2012. The generator is now operational, converting excess steam into electricity that is consumed at the refinery.

The electricity generated accounts for about 7% of Sun Metals Corporations total electricity consumption.

Equipment Type Steam Turbine Generator
Business Response Implemented
Energy saved (GJ) 204,000 GJ per year
Greenhouse gas abated (CO2-e) 55,800 tonnes per year
$s saved $ 2.8 million per year
Payback period 3.4 years
Description of Opportunity No 2 Voluntary Information

Zinc Ferrite a by-product from the Leaching process is packaged for export to Korea. Zinc ferrite must be dried prior to exporting. This has previously been achieved by mixing with a chemical drying agent.

It was identified that excess steam generated in the roasting process could be utilised to dry the zinc ferrite in a rotary dryer. This opportunity was investigated in detail in 2011. The use of excess steam provided an attractive alternative to expensive drying agents.

The rotary dryer project was approved in the second half of 2011, construction commenced early in 2012 and was finalized in November 2012. The rotary dryer is now operational, improving productivity and energy efficiency.

Equipment Type Rotary Dryer
Business Response Implemented
Energy saved (GJ) 44,000 GJ per year
Greenhouse gas abated (CO2-e) Nil
$s saved $ 4.0 million per year
Payback period 1.7 years
Description of Opportunity No 3 Voluntary Information

Approximately 66 tonnes per hour of steam is generated in the roasting process. This steam is distributed across site for various purposes. Steam is a valuable commodity for the zinc refining process, especially with implementation of the steam turbine generator and rotary dryer.

In 2012 an audit of steam traps on site was conducted, and a number of faulty steam traps were identified. The value of steam losses due to faulty steam traps, and the cost to repair or replace faulty traps was determined and a business case presented to management. The repair or replacement of faulty steam traps was approved, and the work was conducted during the 2012 annual shutdown.

Equipment Type Steam traps
Business Response Implemented
Energy saved (GJ) 4,800 GJ per year
Greenhouse gas abated (CO2-e) 1,300 tonnes per year
$s saved $110 thousand per year
Payback period 1.1 years

Part 3 - Transition to Second Cycle

In December 2011 Sun Metals Corporation Pty Ltd reported energy efficiency opportunities that were still under investigation as at 30 June 2011. This report is to advise the business response to these opportunities.

Table 3.1 - Transitioning Opportunities
Status of opportunities identified to an accuracy of better than or equal to ±30% Total 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
No of Opps GJ No of Opps GJ No of Opps GJ
As reported in December 2011 Under Investigation 8 3 909 4 87,494 1 394 88,797
Business Response as at 30 June 2012 Implemented
Not to be Implemented
To be evaluated/reported in the second cycle 8 3 909 4 87,494 1 394 88,797
Table 3.2 - Transitioning Opportunities (By Area)
Status of opportunities identified to an accuracy of better than or equal to ±30% (By Process Area) Total 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
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response as at 30 June 2012.

To be evaluated/reported in the second cycle
Roasting & Sulphuric Acid 3 1 68 1 11,983 1 394 12,445
Leaching & Purification 2 0 0 2 3,475 0 0 3,475
Electrolysis 1 0 0 1 72,036 0 0 72,036
Casting 2 3 841 0 0 0 0 841
Other Services 0 0 0 0 0 0 0 0

DETAIL OF ENERGY ASSESSMENTS CONDUCTED BY AREA

Part 4 - Energy Efficiency Opportunities that have been identified and evaluated

Part 4A – Update of assessments in previous Public Report

ROASTING & SULPHURIC ACID PLANT

Table 4.1 - Assessment Details

Name of entity : Roasting & Sulphuric Acid Plant

Total energy use in the last financial year 351,426 GJ
** Total energy use in the last financial year including steam 1,310,489 GJ
Total percentage of energy use assessed when assessments were undertaken 100 %

** Steam is generated on-site as a by-product of roasting zinc concentrate. There is virtually no greenhouse gas emission as a result.     The energy content of steam has been included with total energy for this report so it can be compared with previous reports.


Description of the way in which the entity carried out its assessment

EEO assessments were conducted site-wide at Sun Metals Zinc refinery in 2008.

The Roasting & Sulphuric Acid Plant is the first process area of the Sun Metals Zinc Refinery. Detailed energy efficiency assessments were conducted in 2008 in line with assessments being conducted in other process areas of the refinery. (as outlined in table 2.1)

Roasting & sulphuric acid plant process area superintendant, process coordinator, and team leaders have been involved with reviewing energy use, identifying energy efficiency opportunities and assisting the Technical Services department in conducting EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

The Roasting & Sulphuric Acid Plant will continue to evaluate and implement energy efficiency opportunities that are beneficial to the business.

Table 4.1A - Opportunities assessed to an accuracy of better than (<) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 3 1 68 1 11,983 1 394 12,445
To be Implemented 0 0 0 0 0 0 0 0
Implemented 3 2 12,740 1 204,156 0 0 216,896
Not to be Implemented 4 0 0 0 0 4 2,403 2,403
Outcomes of assessment Total Identified 10 3 12,808 2 216,139 5 2,797 231,744
Table 4.1B - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 8 2 7,989 0 0 1 22 8,010
To be Implemented 0 0 0 0 0 0 0 0
Implemented 5 4 66,360 0 0 1 74 66,434
Not to be Implemented 1 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 14 6 74,349 0 0 2 96 74,445

LEACHING AND PURIFICATION PLANT

Table 4.2 - Assessment Details

Name of entity : Leaching & Purification Plant

Total energy use in the last financial year 110,829 GJ
** Total energy use in the last financial year including steam 526,027 GJ
Total percentage of energy use assessed when assessments were undertaken 100 %

** Steam is generated on-site as a by-product of roasting zinc concentrate. There is virtually no greenhouse gas emission as a result.     The energy content of steam has been included with total energy for this report so it can be compared with previous reports.


Description of the way in which the entity carried out its assessment

EEO assessments were conducted site-wide at Sun Metals Zinc refinery in 2008.

The Leaching & Purification Plant is the second process area of the Sun Metals Zinc Refinery. Detailed energy efficiency assessments were conducted in 2008 in line with assessments being conducted in other process areas of the refinery. (as outlined in table 2.1)

Leaching & Purification plant process area superintendant, process coordinator, and team leaders have been involved with reviewing energy use, identifying energy efficiency opportunities and assisting the Technical Services department in conducting EEO surveys and projects.

External consultants have also been brought in to assist with surveys and projects. The Leaching & Purification Plant will continue to evaluate and implement energy efficiency opportunities that are beneficial to the business.

Table 4.2A - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 2 0 0 2 3,475 0 0 3,475
To be Implemented 1 0 0 0 0 1 34 34
Implemented 2 2 1,958 0 0 0 0 1,958
Not to be Implemented 2 0 0 0 0 2 0 0
Outcomes of assessment Total Identified 7 2 1,958 2 3,475 3 34 5,467
Table 4.2B - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 10 1 241 0 0 0 0 241
To be Implemented 0 0 0 0 0 0 0 0
Implemented 3 2 3,563 0 0 1 13 3,576
Not to be Implemented 0 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 13 3 3,804 0 0 1 13 3,817

ELECTROLYSIS PLANT

Table 4.3 - Assessment Details

Name of entity : Electrolysis Plant

Total energy use in the last financial year 2,484,399 GJ
Total percentage of energy use assessed when assessments were undertaken 100 %
Description of the way in which the entity carried out its assessment

EEO assessments were conducted site-wide at Sun Metals Zinc refinery in 2008.

The Electrolysis Plant is the third process area of the Sun Metals Zinc Refinery. Detailed energy efficiency assessments were conducted in 2008 in line with assessments being conducted in other process areas of the refinery. (as outlined in table 2.1)

Electrolysis plant process area superintendant, process coordinator, and team leaders have been involved with reviewing energy use, identifying energy efficiency opportunities and assisting the Technical Services department in conducting EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

The Electrolysis Plant will continue to evaluate and implement energy efficiency opportunities that are beneficial to the business.

Table 4.3A - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 1 0 0 1 72,036 0 0 72,036
To be Implemented 0 0 0 0 0 0 0 0
Implemented 2 2 77,465 1 0 0 0 77,465
Not to be Implemented 0 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 3 2 77,465 1 72,036 0 0 149,501
Table 4.3B - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 7 1 3,780 1 3,600 0 0 7,380
To be Implemented 0 0 0 0 0 0 0 0
Implemented 0 0 0 0 0 0 0 0
Not to be Implemented 0 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 7 1 3,780 1 3,600 0 0 7,380

CASTING PLANT

Table 4.4 - Assessment Details

Name of entity : Casting Plant

Total energy use in the last financial year 196,145 GJ
Total percentage of energy use assessed when assessments were undertaken 100 %
Description of the way in which the entity carried out its assessment

EEO assessments were conducted site-wide at Sun Metals Zinc refinery in 2008.

The Casting Plant is the fouth process area of the Sun Metals Zinc Refinery. Detailed energy efficiency assessments were conducted in 2008 in line with assessments being conducted in other process areas of the refinery. (as outlined in table 2.1)

Casting plant process area superintendant, process coordinator, and team leaders have been involved with reviewing energy use, identifying energy efficiency opportunities and assisting the Technical Services department in conducting EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

The Casting Plant will continue to evaluate and implement energy efficiency opportunities that are beneficial to the business.

Table 4.4A - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 2 2 841 0 0 0 0 841
To be Implemented 0 0 0 0 0 0 0 0
Implemented 3 3 2,215 0 0 0 0 2,215
Not to be Implemented 1 0 0 0 0 1 713 713
Outcomes of assessment Total Identified 6 5 3,056 0 0 1 713 3,769
Table 4.4B - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 10 2 4,342 0 0 0 0 4,342
To be Implemented 3 3 763 0 0 0 0 763
Implemented 2 1 64 0 0 0 0 64
Not to be Implemented 0 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 15 6 5,169 0 0 0 0 5,169

OTHER SERVICES

Table 4.5 - Assessment Details

Name of entity : Other Services

Total energy use in the last financial year 10,473 GJ
Energy use assessed in this entity as a percentage of total corporate energy use 100 %
Description of the way in which the entity carried out its assessment

EEO assessments were conducted site-wide at Sun Metals Zinc refinery in 2008.

Other Services at Sun Metals Zinc Refinery, includes process support areas such as Administration and Maintenance. Detailed energy efficiency assessments were conducted in 2008 in line with assessments being conducted in the process areas of the refinery. (as outlined in table 2.1)

The site electrical engineer, and several mechanical and electrical maintenance personnel have been involved with reviewing energy use, identifying energy efficiency opportunities and assisting the Technical Services department in conducting EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

There will be a continued focus to evaluate and implement energy efficiency opportunities that are beneficial to the business in 2013.

Table 4.5A - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 0 0 0 0 0 0 0 0
To be Implemented 0 0 0 0 0 0 0 0
Implemented 3 1 65 1 1,521 1 1,070 2,656
Not to be Implemented 0 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 3 1 65 1 1,521 1 1,070 2,656
Table 4.5B - Opportunities assessed to an accuracy of worse than (>) ±30%
≤ ±30% Number of opportunities Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)
Status of opportunities identified 0 - < 2 years 2 - ≤ 4 years > 4 years
No of Opps GJ No of Opps GJ No of Opps GJ
Business Response Further Investigation Required 2 0 0 0 0 0 0 0
To be Implemented 1 1 936 0 0 0 0 936
Implemented 0 0 0 0 0 0 0 0
Not to be Implemented 2 0 0 0 0 1 101 101
Outcomes of assessment Total Identified 5 1 936 0 0 1 101 1,037
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