EEO Reports

Sun Metals Corporation Pty Ltd

Energy Efficiency Opportunities
Annual Public Report
December 2010

Period to which this report relates :   Start 1 July 2006    End 30 June 2010

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 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.

In 2010 further review of two key production areas on site was conducted. This involved staff from all levels within the organisation and external consultants. A number of new opportunities were identified, representing significant potential energy savings. These opportunities will now be evaluated further to determine the benefit to the business.

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 to assist the Technical Services department in conducting EEO surveys and projects. External consultants have also been brought in to assist with surveys and projects.

Sun Metals experienced challenging trading conditions during the 2009/2010 financial year due to the global financial crisis. As a result the company undertook a program of cost reductions, meaning that both capital investment and operating expenditure has been limited to that necessary to sustain the operation. Operating in an energy efficient manner and seeking to implement energy efficiency projects is viewed as smart business at Sun Metals, especially during a period of economic uncertainty.

Table 1.2   Energy use assessed

Business unit that has had an assessment completed by 30 June 2010 (includes all assessments completed to date for the current 5 year cycle). Period over which assessment was undertaken Energy use for the period 1 July 2009 to 30 June 2010 of the assessed entity
Roasting and Sulphuric Acid May to November 2008 781,962 GJ
Leaching and Purification May to November 2008 1,167,237 GJ
Electrolysis May to November 2008 2,918,286 GJ
Casting May to November 2008 193,354 GJ
Other Services May to November 2008 15,518 GJ
Total energy use of the whole corporate group in the period 1/7/2009 to 30/6/2010 5,076,358 GJ
Total energy use of assessed to date in the period 1/7/2006 to 30/6/2010 100%
New opportunities were identified in the Roasting & Sulphuric Acid and Leaching & Purification areas as further detailed reviews were conducted in these areas during 2010. These have been recorded in tables as new assessments for the purpose of this report. Energy use of the assessed areas for the period 1/7/2009 to 30/6/2010 expressed as a percentage of total energy use for the period 1/7/2009 to 30/6/2010 38%

Table 1.3   Accuracy of energy use assessed data

Entity % achieved
Sun Metals Corporation ± 5%

Part 2 - Energy Efficiency Opportunities that have been identified and evaluated

Part 2A - New assessments completed or not reported since previous Public Report

Total energy use for the period 1/7/2009 to 30/6/2010 of Sun Metals Corporation from which the opportunities identified below were generated (and is reported in Table 1.2). 5,076,358 GJ

Table 2.1   New 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 Under Investigation 2 0 0 2 14,507 0 0 14,507
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 2 0 0 2 14,507 0 0 14,507

Table 2.2   New 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 Under Investigation 3 1 12,262 0 0 2 106,747 119,009
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 3 1 12,262 0 0 2  106,747 119,009

Part 2B - Update of assessments reported in previous Public Reports

Total energy use for the period 1/7/2009 to 30/6/2010 of Sun Metals Corporation from which the opportunities identified below were generated (and is reported in Table 1.2). 5,076,358 GJ

Table 2.3   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)3
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 Under Investigation 5 3 909 2 72,986 0 0 73,895
To be Implemented 1 1 52,549 0 0 0 0 52,549
Implemented 9 7 4,717 1 1,521 1 1,070 7,308
Not to be Implemented 2 0 0 0 0 2 887 887
Outcomes of assessment Total Identified 17 11 58,175 3 74,507 3 1,957 134,640

Table 2.4   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1,2 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)3
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 Under Investigation 42 8 12,190 2 3,631 1 22 15,843
To be Implemented 5 3 1,319 0 0 0 0 1,319
Implemented 8 5 5,011 0 0 2 87 5,098
Not to be Implemented 6 0 0 0 0 1 2,147 2,147
Outcomes of assessment Total Identified 61 16 18,520 2 3,631 4 2,256 24,407
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
  2. Several closely related projects have been combined since the previous public report for simplification. Some projects have also been reviewed and had their accuracy re-assessed, switching some between the better than and worse than ±30% categories.
  3. Further investigations of projects have increased the total estimated savings per annum for this area since the previous Public Report.

Part 2C - Details of at least three significant opportunities found through EEO assessments

Table 2.5   Description of 3 significant opportunities

Opportunity 1

Magnesium removal from zinc concentrates (to be implemented)
Zinc concentrates contain small amounts of magnesium, typically 0.3%. As there is insufficient natural bleed in the electrolytic process, accumulation occurs in process liquors. Increased levels of magnesium in electrolyte result in unfavorable energy consumption in the electrolysis process.

In 2010 detailed investigation was conducted into several different methods to reduce the magnesium content in process solution. One particular method, involving pre-treatment of the zinc concentrates to remove magnesium was selected according to the findings of the investigation. A business case was developed and capital investment was approved. This project is to be implemented in 2011.

Electricity savings in the electrolysis process are estimated to be 14,100MWh per year, which equates to 14,664 tonnes of greenhouse gas emissions saved.

Opportunity 2

Replacement of two large fixed speed fan motors with variable speed motors (under investigation)
A detailed energy survey of medium and low voltage motors on site was conducted in 2010 to determine current energy use and potential energy savings. It was identified that two large fixed speed fan motors that supply air injection to the Roasters were operating below their optimum flow rate and a considerable electricity saving could be achieved by replacement of these motors with variable speed motors.

The capital cost for this project was reviewed during 2010 and a business case for implementation developed. This business case is currently under review. Implementation of this project will be subject to normal capital investment processes and approvals.

The potential electricity savings of this project is estimated to be 3,330MWh per year. This is equal to a greenhouse gas reduction of 3,460 tonnes.

Opportunity 3

Using a Steam Turbine to generate electricity (under investigation)
Detailed investigation of three options to utilize a steam turbine for electricity generation or as an offset to electricity use were conducted during 2010. Capital expenditure review is currently underway.

Potential energy savings for these options range from 50,000 GJ to 150,000 GJ per year, and are equal to a greenhouse gas reduction range from 52,000 to 156,000 tonnes.

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 Sun Metals

SB Lee
Date 31st Dec. 2010

DETAIL OF ENERGY ASSESSMENTS CONDUCTED BY AREA

Part 2 - Energy Efficiency Opportunities that have been identified and evaluated

Part 2A - New assessments completed or not reported since previous Public Report

ROASTING & SULPHURIC ACID PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Roasting and Sulphuric Acid Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 781,962 GJ

Table 2.5   New 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 Under Investigation 1 0 0 1 11,983 0 0 11,983
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 1 0 0 1 11,983 0 0 11,983

Table 2.6   New 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 Under Investigation 3 1 12,262 0 0 2 106,747 119,009
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 3 1 12,262 0 0 2 106,747 119,009

LEACHING AND PURIFICATION PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Leaching and Purification Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 1,167,237 GJ

Table 2.7   New 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 Under Investigation 1 0 0 1 2,524 0 0 2,524
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 1 0 0 1 2,524 0 0 2,524

Table 2.8   New 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 Under Investigation 0 0 0 0 0 0 0 0
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 0 0 0 0 0 0 0 0

Part 2A - Update of assessments in previous Public Report

ROASTING & SULPHURIC ACID PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Roasting and Sulphuric Acid Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 781,962 GJ

Table 2.9   Opportunities assessed to an accuracy of better than (<) ±30%

≤ ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 1 1 68 0 0 0 0 68
To be Implemented 0 0 0 0 0 0 0 0
Implemented 1 1 479 0 0 0 0 479
Not to be Implemented 1 0 0 0 0 1 175 175
Outcomes of assessment Total Identified 3 2 546 0 0 1 175 721

Table 2.10   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 12 4 8,169 1 31 1 22 8,222
To be Implemented 0 0 0 0 0 0 0 0
Implemented 3 2 1,384 0 0 1 74 1,458
Not to be Implemented 2 0 0 0 0 1 2,147 2,147
Outcomes of assessment Total Identified 17 6 9,553 1 31 3 2,242 11,827
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
  2. Further investigations of opportunities in this area have resulted in improved accuracy of estimated savings, and some savings have been updated since the previous public report.

LEACHING AND PURIFICATION PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Leaching and Purification Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 1,167,237 GJ

Table 2.11   Opportunities assessed to an accuracy of better than (<) ±30%

≤ ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)3
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 Under Investigation 1 0 0 1 950 0 0 950
To be Implemented 0 0 0 0 0 0 0 0
Implemented 1 2 2 1,958 0 0 0 1,958
Not to be Implemented 1 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 3 2 1,958 1 950 0 0 2,908

Table 2.12   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1,2 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)3
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 Under Investigation 10 1 241 0 0 0 0 241
To be Implemented 1 1 34 0 0 0 0 34
Implemented 3 2 3,563 0 0 1 13 3,576
Not to be Implemented 2 0 0 0 0 0 0 0
Outcomes of assessment Total Identified 16 4 3,838 0 0 1 13 3,851
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
  2. Several closely related projects have been combined since the previous public report for simplification. Some projects have also been reviewed and had their accuracy re-assessed, switching some between the better than and worse than ±30% categories.
  3. Further investigations of projects have increased the total estimated savings per annum for this area since the previous Public Report.

ELECTROLYSIS PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Electrolysis Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 2,918,286 GJ

Table 2.13   Opportunities assessed to an accuracy of better than (<) ±30%

≤ ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 1 0 0 1 72,036 0 0 72,036
To be Implemented 1 1 52,549 0 0 0 0 52,549
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 2 1 52,549 1 72,036 0 0 124,585

Table 2.14   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 8 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 8 1 3,780 1 3,600 0 0 7,380
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
  2. Further investigation of the SZP project has determined there to be a much larger savings of energy than previously estimated, increasing the total estimated savings per annum for this area since the previous Public Report.

CASTING PLANT

Total energy use for the period 1/7/2009 to 30/6/2010 of the Casting Plant from which the opportunities identified below were generated (and is reported in Table 1.2). 193,354 GJ

Table 2.15   Opportunities assessed to an accuracy of better than (<) ±30%

≤ ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 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 2.16   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 10 23 0 0 0 0 0 0
To be Implemented 3 1 348 0 0 0 0 348
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 4 413 0 0 0 0 413
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
  2. Further investigation of the Jumbo Heater Lids project has determined there to be a smaller savings of energy than previously estimated, decreasing the total estimated savings per annum for this area since the previous Public Report.
  3. For two opportunities identified in the Casting area, energy savings have not yet been calculated (as the projects are still under investigation), however have already demonstrated a payback period of less than 2 years due to other savings realised.

OTHER SERVICES

Total energy use for the period 1/7/2009 to 30/6/2010 of the Other Services from which the opportunities identified below were generated (and is reported in Table 1.2). 15,518 GJ

Table 2.17   Opportunities assessed to an accuracy of better than (<) ±30%

≤ ±30% Number of opportunities1 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 Under Investigation 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 2.18   Opportunities assessed to an accuracy of worse than (>) ±30%

> ±30% Number of opportunities1 Estimated energy savings per annum by payback period (GJ) Total estimated energy savings per annum (GJ)2
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 Under Investigation 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 0 0 0
Outcomes of assessment Total Identified 5 1 936 0 0 0 0 936
  1. Not all projects have yet had energy savings and payback periods calculated and so have not been included in the total savings, but have been included in the opportunities count.
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