SUNConferences, SAIIE NeXXXt

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Alternative Data Structures for Improved Energy Reporting and Budgeting on Gold Mining Group Operations
Andrea Ferreira, Pieter FH Peach, Johann F van Rensburg

Last modified: 2019-09-02


Accurate internal energy-use reporting on large gold mining groups remain vital to ensure correct budgeting and adequate tracking of financial performance of operations and systems. Metering errors are unfortunately a reality of this monitoring process, affecting everything from single sub-systems on small operations, to the entire group’s financial performance review. These types of errors also have an accumulating nature, becoming larger if left unaddressed.

The energy reporting structure of a gold mining group with a budgeted electricity bill of approximately R 3-billion was investigated for the purposes of this research. It was found that due to compounding errors in sub-system metering, average errors of up to 8% (R 236-million) were identified in relation to the total consumer electrical sub-station measurements (Eskom billing meters). This led to erroneous reporting of sub-systems’ progressive electrical performance (daily resolution), as consumer sub‑station measurements were only available once per billing cycle (monthly).

A methodology was developed to normalise sub-system metering data more regularly with check‑metering data which was available on a daily basis. This daily normalisation was implemented on a division of the mining group using an automated daily reporting system and displayed on an online dashboard. The average daily sub-system error displayed on the online platform was reduced by 6.9%, paving the way for an alternative energy reporting system and improved budgeting. This error reduction equates to approximately R 55-million per annum that can now be allocated under the correct low-level sub‑system budgets.

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