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Changing Australia's Cost Centre - Fuel

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For Western Australia in 2020 (WA Dept Mines, Industry Regulation and Safety) reported that in Western Australia there were:

65 Mining Operations that employed between 300 and 1,000 people each.

31 Mining Operations that employed in excess of 1,000 people, where each consumes 25ML to 40ML diesel per year

In total, about 7% of Australia’s annual diesel usage.

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And yet there is only 1,621ML of diesel stocked in Australia on Average for 2019/20 (Ref Dept Ind., Science & Energy Report Issue 293).  Because the same report has 29,554ML diesel sold/yr, means Australia has only 20 days of stocked diesel supply.

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As an example, if a mining corporation implemented a strategy to produce sufficient Renewable Diesel at 22c/L then:

It provides a substantially discounted fuel price against gate price which
   a. the operations budget; and
   b. the economic model on which optimised mine plans are created; and
   c. the economic model of current production costs on which (for a mine) Ore Reserves are calculated; and
   d. positive changes in Ore Reserves equates to positive changes in the balance sheet, which is reported to shareholders.

There will be a security of fuel supply:

   a. not dependent on current importation of diesel fuel into Australia; and

   b. provides a stable and risk-averse supply because it can be produced in a diversity of regions; and

   c. is a modular and distributed process, capable of operating with very little infrastructure; and

   d. it is not an intermittent energy supply system (such as wind or solar), but designed to operate 24/7 year round; and

   e. the energy storage is easily distributed fuel (i.e. not batteries).

Can provide a stable fuel cost which:

   a. improves the risk in financial models; and

   b. provides a risk-averse assessment of future production cost, especially when committing to “start of project” plans.

The Paradigm Fuels process is itself energy efficient, and able to meet, its internal fuel and energy requirements.

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Environmental Implications For A Mining Operation:

Its mining operations will be carbon neutral.

That 100% of the CO2 generated by its mining operations will be absorbed in carbon absorption facilitated by the Paradigm Fuels Method.

That a further 1.7TCO2 per 1 Ton of Renewable Diesel utilised in its mining operations can be credited against other corporate processes (i.e. smelters, refineries and processing).

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