Compressed Air for Energy Storage

Energy storage is the new technology for green companies who are keen on developing renewable energy sources. Energy from wind turbines and solar farms are then collected when they are at their most productive to be used later when it is needed. Nova Scotia, for example, is a good candidate for energy storage since most of its wind energy is produced at night but the higher demand is during the daytime.

Experts are now looking at compressed air to do the job. Various companies are already developing the technology. For Hydrostor, a company in Toronto, large inflatable balloon-like bags called "flexible accumulators" are used to store the compressed air 50 to 500 meters underwater. An underwater transmission line transmits excess power to an offshore floating platform. During the compression process, heat produced is stored in the platform. To recover the stored energy, air is released which then pushes upwards and drives a generator. An estimated 70 percent of the energy is recovered. The Hydrostor model is set to produce 1 MW/4 MWh.  Although cost-effective, the problem with pumped hydro is that it only work for cities located near bodies of water. A California-based company, LightSail Energy is now working on grid-scale storage which is as cost-effective and efficient as pumped hydro minus the geographic restrictions.

Now, Watts Wind Energy Inc. has partnered with LightSail Canada Inc. of Halifax to conduct trials on their compressed air system in Nova Scotia. Electricity from wind turbines will be converted to compressed air and stored in metal tanks. A generator is then used to turn the energy back to electricity when it is needed.

Nova Scotia is said to be an ideal place for energy storage development because of its stringent policies on renewable energy and its wind and in-stream tidal potential. Other tests are set to be carried out in Digby and Cape Breton. Batteries and compressed air are considered for the pilot testing in Digby while the testing in Cape Breton will involve the use of pumped hydro.

General Compression, another company working on energy storage, is also developing a system to store compressed air in underground caves and old mines.

Energy storage is set to become a crucial component of Canada’s energy industry. It currently ranks sixth globally insofar as total installed wind capacity goes, according to a report released recently by Industrial Info Resources.
 

Mine Safety Concerns Emerge After Potash Corp. Fire

Fires are serious affairs but they become deadlier when they happen in a mine. Smoke spreads quickly as circulation systems keep the air moving steadily. So when flames erupted from a large spool of electrical wire like what happened in Potash Corp.’s Rocanville mine in Saskatchewan at 2 a.m. on September 25, Jamie Johnson knew he had to act fast.

As the lead hand of a three-man crew running a miner, he called the control room as soon as the emergency system sounded and was told to move to a refuge station 6.5 kilometers away. This was also the case for 16 other mine workers who were spread out across three other refuge stations in the mine. Earlier, nine other workers who were near the end of their shift had been brought to the surface just a few minutes after the fire started. The 20 others left in refuge stations below would not be whisked up until 24 hours later.

Although the fire was put out and no one was hurt, the incident at Rocanville prompted the Communications, Energy and Paperworker’s Union of Canada to call for a mine safety review on its cause. Potash Corp.'s occupational health and safety committee and management have already begun an internal investigation into the cause of the fire. They will then forward their report to the mine safety unit of the provincial government where the Occupational Health and Safety division of Saskatchewan will assess it to prevent future incidents.

In the event that government investigations, which is set to conclude in 90 days, will reveal that the mining company has been remiss in complying with safety regulations, the Occupational Health and Safety division will bring the matter to the justice ministry.

But for Johnson and the other miners, the refuge stations and weekly emergency drills had clearly served their purpose. The shelters—which were sealed off from the rest of the mine—were large and had fresh air, water, food, and bathroom facilities. It also has a landline which would keep the miners connected with those above-ground, including their families. 

Meanwhile, the constant drills and training, as mandated by government standards, that they constantly underwent has helped them stay calm and focused in such emergency situations. For instance, Johnson and his crew already had a backup plan in case they encountered heavy smoke on the way to the refuge area: They would have to go back to the mine and wall themselves in with a brattice to separate the clean air from the dirty air. Johnson reflects: "We had a pretty good idea of what we were going to do. We just didn’t want to have to go through it." Thankfully, they only encountered light smoke and made their way to the refuge area in safety.

Rocanville mine resumed operations the day after the incident.

Investor Confidence and Quartz Fuel Mining in the Yukon

Fraser Institute’s Survey of Mining Companies: 2011-2012 held good news for the mining industry in the Yukon. It was rated as 10^th among the 93 jurisdictions surveyed in terms of Policy Potential Index or PPI which measures the overall attractiveness of mining policies instituted by a particular government. The Yukon also holds the distinction as the only Canadian Territory to reach the top 10 in this survey. The other top jurisdictions are: 1) New Brunswick, 2) Finland, 3) Alberta, 4) Wyoming, 5) Quebec, 6) Saskatchewan, 7) Sweden, 8) Nevada, and 9) Ireland.

Yukon Chamber of Mines executive director Michael Kokiw cited investor confidence brought about by the recently-implemented streamlined permitting process as one of the factors for the Yukon’s meteoric rise in the Fraser rankings. He reveals that the "industry’s adherence to best-management practices and early, effective engagement with First Nations and communities" combined with "the relative certainty and transparent regulatory and permitting processes" make them competitive globally which benefits the economy and elevates "the quality of life of all Yukon residents."

The rise is indeed unprecedented. From only $46 million spent on exploration in 2006, the figure rose to $320 million in 2011 and from zero dollars for rock mineral production in 2006, the 2011 figure rose to $485 million. For 2012, the exploration expenditure is estimated to be $200 million with more growth expected in the future.

Investor confidence is further backed by the fact that the Yukon delivers. The mineral quartz fuels the industry, generating revenues of up to $4.3 million. Gold, meanwhile, accounted for only for $224,466 in revenues. Capstone Mining Corporation which acquired Minto Explorations in 2005 has now discovered nine more deposits in its explorations since then. They are now processing and waiting for their Phase 4 Quartz Mining License to get approved before they can start harvesting. When Phase 4 operations get underway, the current 36,000 tonnes per day production is expected to increase to 37,050 tonnes per day. Cindy Burnett, vice-president for investor relations of Capstone, reveals that the lifespan of the mine is 10 years since it has a "reserve of 11.4 Mt."　

There are more than 80 mineral deposits in the Yukon’s four mining districts of Dawson, Mayo, Watson Lake, and Whitehorse. The six major mines in the territory include Brewery Creek which mines lode gold; Bellekeno and Minto which mine quartz; Carmacks Copper which mines oxide copper; Wolverine which mines zinc; and Sa Dena Hes which mines lead and zinc.

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Diamond Production Up in N.W.T.

Diamond production has increased in the Northwest Territories. From its 2010 figures, EKATI, Diavik, and Snap Lake—N.W.T.’s three diamond mines—registered an estimated $40 million increase in value in 2011. The overall production of the mining industry in the N.W.T. is pegged at $2.1 billion in 2011 which is nearly a 5 percent increase over the 2010 figures.

The excellent production in N.W.T.’s mines has translated to a wide spectrum of benefits. Pam Strand, President of the N.W.T. & Nunavut Chamber of Mines sums up the advantages: "The N.W.T. mines have turned their production value into significant employment, business and tax benefits for the territory and for Canada." Specifically, the diamond mines have created not only $4 billion in Aboriginal businesses but a record-breaking more than 8,700 person years of Aboriginal employment as well.

The trend seems set to continue as De Beers Canada ventured into a Traditional Knowledge Study Agreement with Deninu Kué First Nation for the Gahcho Kué Project. De Beers owns Snap Lake Diamond Mine. Tom Ormsby, De Beers Canada’s director of external and corporate affairs dubs Gahcho Kué Project as "Canada’s next great diamond mine." The timing couldn’t have been better as most of the mines in the N.W.T. are closing. EKATI Diamond Mine, which produces an average of three million carats of rough diamonds annually, is scheduled to close in seven years. EKATI is Canada’s first diamond mine.

A total of six new mines have been proposed in N.W.T. But to continue reaping the gains, the nation’s diamond industry must seek out ways to prolong the life of its mines. Diavik is already moving towards that end as it goes from open pit to underground mining. This will extend its mine life up to 2020.

The road to continued mining success in N.W.T. is by no means easy as the challenges are very real. Yet, the exploration programs and history of past successes ensure that Canada continues to be a key diamond producer. Tom Hoefer, Executive Director of N.W.T. & Nunavut Chamber of Mines, concludes: "We are in a deficit-reduction situation in Canada, and we are hopeful that governments will understand that putting money into the minerals industry is an investment that provides big returns. We don’t want to miss that window if we are to maximize opportunities to Canada and its residents, particularly in the north, where mining and non-renewable resources are clearly our competitive advantage." 

Saskatchewan Mining: On a Roll

The world economy may have suffered in the past five years but the mining industry in Saskatchewan did not skip a beat. In fact, Potash Corporation of Saskatchewan (PotashCorp), operator of half the province’s ten mines, surpassed its 2007 capacity production of 9.1 million tonnes. It registered 9.3 million tonnes in 2011 for potash production - and continues to expand.

PotashCorp is surging ahead, allocating $7.7 billion for its expansion projects. It intends to spend $6 billion to improve its Saskatchewan operations in Allan, Cory, Lanigan, Patience Lake, and Rocanville. These projects are slated to be finished in 2014 at the earliest and are expected to create 36,000 person years of employment for Saskatchewan. It is also expected to double the company’s operating capacity for potash.

Other potash producers in the region—The Mosaic Company, Agrium Inc., K+S Group, BHP Billiton Ltd., Vale S.A., Rio Tinto PLC, JSC Acron, Western Potash Corp., Karnalyte Resources Inc., and Encanto Potash Corp.—are also expanding their various operations. 　Bill Johnson, PotashCorp’s Senior Director of Public Affairs, is optimistic: "About half of the world’s potash reserves are in Saskatchewan, so the future looks very good. The growth markets for us are China, India, Brazil and South East Asia, where both the population base is increasing significantly, and also the wealth. When that happens, one of the areas you see growth in is food production."

But potash, used mainly in fertilizers, is not the only mineral keeping Saskatchewan’s economy upbeat. Diamond, uranium, and coal are also big contributors. More than $50 billion is expected to be infused in the diamond fields located in the eastern part of Prince Albert in the next twenty years. Uranium production in McArthur River/Key Lake, Mc-Clean Lake and Rabbit Lake continues to be a major industry, contributing $1.09 billion to the province’s economy. Saskatchewan is Canada’s third largest producer of coal with its three mines in Boundary Dam, Bienfait and Poplar River all operated by Sherritt International Corp.

The exploration cost for these minerals is not cheap. Estimates from Natural Resources Canada show that the expenditures reach close to $300 million. But when compared to the economic benefits— $3 billion spent on wages, goods and services and $2 billion in revenues through royalties and taxes—it’s easy to understand why the mining industry in Saskatchewan is on a roll.