Developing Successful Hybrid Solutions for an Off-Grid Site Nyrstar ...

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Developing Successful Hybrid Solutions for an Off-Grid Site

Nyrstar El Toqui

Tom Olsen

General Manager

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Sociedad Contractual Minera El Toqui

Location

It is located in the Aysén region, 120 kilometers North of Coyhaique, the

capital of the region and at 700 m above sea level and surrounded by

the communities of Villa Mañihuales, Alto Mañihuales and El Gato.

History

In 1971 Mr. Froilán Villegas, senior explorer, discovered two Zn veins,

the Antolín & Zúñiga veins.

After an exploration campaign carried out during 1974 by

Metallgesellschaft AG and supported by local investors, 1.28m tonnes of

reserves with 9% Zn were identified.

The construction of a 180K tonnes per year (450 tpd) process plant

began in1980.

The equipment for a 2.2 Mw hydro plant, and for the process plant

began to arrive in early 1982.

Mine operations began in November, 1983.

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Current Operation

El Toqui is an underground, polymetallic mine, producing lead and zinc

concentrates containing gold and silver.

El Toqui Personnel 405 (89% are from the Aysén region)

Contractors 228 (concentrate haulage, catering services)

Mill throughput: 1,800 tpd - 631,000 tpy (Pb & Zn).

Zn contained in concentrate 42 kt in 2015 plan.

Pb contained in concentrate 1.8 kt

Au contained in concentrate 8,900 ounces

Ag contained in concentrate 117,000 ounces

84% Chile’s Zn production is produced from El Toqui according to

statistics provided by the Chilean INE.

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Current Power Generation Units

2 units 3512 Caterpillar diesel gensets 1.2 MW each


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2 units Francis turbines from Spain 1.1 MW each

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6 units Vergnet Eolien from France 0.23 MW each

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2 units Francis turbines from Spain 1.1 MW each

6 units Vergnet Eolien from France 0.23 MW each

Total installed capacity 10.8 MW

The El Toqui power system is isolated from the regional grid system.

Maximum power demand of the El Toqui system has been up to 6.3 MW

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2014 Full Year - Power Generation Data

Diesel 22.96 GWh @ $5.8M $254.5/MWh 54.3%

Hydraulic 15.86 GWh @ $337K $ 21.3/MWh 37.6%

Wind Farm 3.4 GWh @ $ 74K $ 21.6/MWh 8.1%

Total 42.24 GWh @ $6.3M 100% power generation

2014 Average cost per MWh $148.1/MWh

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49%

40%

27%

35%

45%

49% 48% 48%

53% 50%

52% 54%

0%

10%

20%

30%

40%

50%

60%

0

500

1.000

1.500

2.000

2.500

3.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

% MWh

2014 Power Generation - Diesel vs Green

Diesel Hydro Wind Green %

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4,7

3,9

1,0

3,4

8,0

8,8

7,0

9,4

7,0

7,7

8,7

6,1

0

2

4

6

8

10

0

500

1.000

1.500

2.000

2.500

3.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

m3/sec MWh

2014 Power Generation – Average River Flow

Diesel Hydro Wind River Flow - m3/sec

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26 27 28 27 29 29

35 38

40 42

45%

62%

55% 57% 55%

60%

45%

51% 48%

46%

0%

10%

20%

30%

40%

50%

60%

70%

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% GWh

Last 10 Years Total Power Generation (GWh) & Green Energy (%)

Total Power Generation GWh Green Power %

Mill #6 & Paste Plant

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45%

62%

55% 57% 55%

60%

45%

51%

48% 46%

0%

10%

20%

30%

40%

50%

60%

70%

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% GWh

Last 10 Years Power Generation - Diesel vs Green

Diesel Power GWh Green Power GWh Green Power %

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0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014

$/MWh

Average Cost per MWh per Generation Unit

Diesel Hydro Wind Average

Diesel

Total Average

Wind Farm

Hydraulic

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0,59

0,80

0,51

0,66

0,91 0,90 0,91 0,87

0,0

0,5

1,0

1,5

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012 2013 2014

$ $/MWh

Total Average Cost - $/MWh & Average Cost per Liter of Diesel

$/liter Average

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Hydraulic Power Plant

Nyrstar El Toqui

Tom Olsen

General Manager

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The 2.2 MW Hydro Power Plant – Intake

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Hydro Power Plant – Penstock & General View

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Hydro Power Plant – Infrastructure

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Hydro Power Plant - Key success factors

a. El Toqui has water rights of 7.5 m3/sec from the El Toqui River.

b. River flow capacity to operate both hydro-turbines for 8 months in the

year is available and based on climatic conditions.

c. High availabilities since commissioning, producing 15,000 MWh/year,

annual average.

d. Normal wear of parts, components, etc., require complete rebuild of

each turbine every 10 years.

e. Low maintenance cost of hydro power turbines.

f. Actual cost to install a third turbine (1.9 MW) = $1.7M per MW

installed.

g. The expansion of the hydro power plant will increase the average

green annual power generation from 45% to 65% beginning in 2016.

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Hydro Power Plant – Turbines under operation

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Hydro Power Plant – Discharge Channel

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Hydro Power Plant - Challenges

a. Long period of time to obtain additional water rights

b. Long period of time to obtain corporate approval to carry out the

expansion project. (3 years)

c. Weather conditions in the Aysén region during construction.

d. Meeting construction deadlines due to distances and isolation of the

site.

e. Limited amount of qualified personnel from the region to perform

construction works.

f. Manufacturing time of main equipment for the new generation unit.

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Wind Farm

Nyrstar El Toqui

Tom Olsen

General Manager

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Wind Farm Characteristics

Manufacturer Vergnet Eolien from France

06 Units Model MP-250

Capacity 250 KW 400V 3 Phase

Type of generator Asynchronous Generator

2 Speed Operation 31 rpm / 47 rpm

# of Blades 2 blades per unit

Height 55 meters high

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Wind Mills In Operation.

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Wind Farm Characteristics

Total Original length between blades 32 meters

Actual total length of blades 28 meters

Main drive weight 9 tonnes

Type of structure hinged with winch & auxiliary support

Wind speed for full generation capacity 12 meters/sec

Low speed operational range 5-8 meters/sec @ 31 rpm

High speed operational range 8-22 meters/sec @ 47 rpm

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General View

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Wind Farm - Key success factors

a. Small amount of time to execute the project plan from beginning to

commissioning and closure (8 months).

b. The site is located with company property, 3 km power generation control

room.

c. A crane was not required during installation and it is not required to carry

out maintenance works.

d. El Toqui personnel are trained to maintain and repair the units.

e. The official registration and authorization to operate took only 2 months.

f. Maintenance includes mainly minor parts and components.

g. Purchasing of special tools, spare parts and components during the

execution of the project, have been key to maintain the wind farm.

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Wind Mill Unit Under Maintenance

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Wind Farm - Challenges

a. High cost to operate the diesel gensets drove the decision to invest in

wind power. Additional water rights to Rio Toqui had not yet been

obtained.

e. As a result of wind gusts, it was necessary to lower the range of

operation from 25 m/sec to 20 m/sec.

d. The control system for the blades is not as fast as the wind gusts

variations existing in the area. This has provoked most of the issues

reported per each one of the six units.

b. Original 32m blades were not the adequate for the zone due to prevalent

wind gusts. It was necessary to replace them with reinforced 28m

blades.

c. Original hydraulic accumulators and shock absorbers also had to be

replaced with reinforced units due to wind gusts.

f. Wind range above 20 m/sec. is not common. This wind velocity never

lasts more than 8 hours.

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Technical Inspection

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Details on operations, maintenance and monitoring of this hybrid system.

El Toqui’s experience with the wind farm has resulted in not operating

the wind farm when temperatures fall below 0°C. Cold temperatures

cause hydraulic problems and ice accumulates on the blades.

The wind farm has a supervisory control and data acquisition (SCADA)

monitoring system in place through optic fiber. Based on the

manufacture´s recommendation, the preventive maintenance per unit is

performed every 6 months of operation.

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Details on operations, maintenance and monitoring of this hybrid system.

The hydro power plant requires operators to run due to its age. SCADA

system is planned to be implemented in the near future.

Solid maintenance practices in condition monitoring program which

include:

• Vibration monitoring

• Temperature monitoring

• Lubricant analysis

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What are the expectations in terms of fuel cost-savings and additional benefits from renewables integration?

1. The estimated diesel savings on a normal hydrological year of operation

from the hydraulic plant will be 6.5M liters/year.

2. Additional 1.2M liters/year of diesel savings are expected to be gained

from the wind farm.

3. The reduction on hours of operation per each diesel generation unit will

reduce their maintenance cost per year. Longer intervals between top

overhauls and complete overhauls will be extended – further reducing

costs.

4. Also, 2.8M liters/year of diesel savings could be obtained if additional

water rights were obtained. Additional water rights would lead to the

installation of another hydro turbine.

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Thank you

Tom Olsen

General Manager

Developing Successful Hybrid Solutions for an Off-Grid Site Nyrstar ...

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