Energy

Aspect Specific DMA

Metal production is very energy intensive, both in the mining phase and in the refining processes. Boliden’s energy consumption is a major cost item, accounting for approximately 14% (16%) in the breakdown of the Group’s total operating costs. Boliden’s energy policy states that all business units shall implement and maintain energy management systems. Boliden shall also reduce its dependence on fossil fuels by using renewable and/or recycled energy where possible. In previous years, energy efficiency measures have also been promoted on a broader scale through voluntary commitments within the framework of national programmes, e.g. through the Swedish Energy Agency programmes, the Finnish equivalent (MOTIVA), and collaborations with Enova in Norway and SEAI in Ireland. The main aim of these programmes has been to increase the efficiency with which electricity is used. The changes in the total use of energy use and energy intensity in the reporting year are mainly related to the integration of the Kevitsa mine. This unit has been included June to December, and will be fully accounted for in the 2017 report.

Energy management systems

Boliden’s approach is to have energy management systems, in accordance with ISO 50001, at all significant operational locations. This also ensures the company’s compliance with the rules and regulations imposed by the Energy Efficiency Directive 202/27/EU.

 

EN3 Energy consumption within the organization

Energy consumption in 2016 totalled 19.1 (16.8) million gigajoules (GJ). Electricity accounts for 16.1 (14.6) million GJ of this consumption, which equates to 4.5 (4.1) TWh.

The reported energy usage is based on invoiced incoming and outgoing deliveries, supplemented by internal measurements and stock inventories at the end of the year. Conversions between weight and energy have been performed using energy values specified by the supplier or by using tabled values provided by national bodies.

Electricity is the dominant source of indirect energy in the Group. Out of 16,533,000 GJ of indirect energy used, 97% comprises electricity and only 3% is purchased heat. Coke, coal, oil and fuel gases are used for the reduction and smelting of copper, lead and zinc concentrates. Diesel is used for transportation purposes, in mining operations and for internal transportation. Limited amounts of heating oil and gas are used for heating purposes during the cold season. The use of biofuels in metallurgical processes has been tested and evaluated, but has up to now, been negligible in the larger context. A boiler based on biomass has been added during the reporting period. Bio-based fuels have also been used in road transports, to a limited extent.

Direct Energy
consumption within
the organisation (GJ)

2014

2015

2016

Coal & coke

1,961,000

1,757,000

1,743,000

Gas

402,000

395,000

446,000

Oil

1,057,000

1,187,000

1,794,000

Diesel & petrol

1,795,000

1,692,000

1,689,0001)

Other

-

-

13,000  

Total renewable energy

-

-

29,000

Total non-renewable energy use

5,216,000

5,031,000

5,686,000

Electricity, purchased

14,473,000

14,635,000

16,080,000

Heat, purchased

420,000

381,000

453,000

Gross energy input

20,109,000

20,047,000

22,218,000

Produced energy, for internal use

2,052,000

2,117,000

2,205,000

Produced energy, sold

2,878,000

3,234,000

3,157,000

Net energy used

17,231,000

16,813,000

19,061,000

1) Whereof 16,000 GJ diesel from renewable sources

 
Energy input, 2016 per source
Energy accounts for approximately 16 per cent 
(17%) of the Group´s operating cost.

 

EN5 Energy intensity

Boliden’s energy intensity was 13.17 (12.22) GJ/t metal, an increase from the previous year. The energy intensity ratio is reported as the product intensity (energy consumed per unit produced). It is calculated as Boliden’s net total energy consumption (same as in EN3) for all Boliden sites divided by the production output in metal tonnes from Boliden production sites. This indicator is affected both by process efficiency and the product mix and raw material properties. The intensity increase in the reporting year is due to a new business unit (Kevitsa) being added to the Group.

Energy intensity

GJ/t metal

EN6 Reduction of energy consumption

Boliden has implemented routines for purchasing high-consumption electrical equipment and procedures for the evaluation of life-cycle costs in construction and renovation as important parts of its ISO certified energy management systems. Because of the different character of mining and smelting operations, Boliden has chosen to work with local energy targets instead of Group targets.

In its mining operations, Boliden has put a lot of effort into reducing the energy used for ventilation (electric energy) and heating (oil or propane) of its underground mines. In a “Ventilation on Demand” project at the Kankberg mine in the Boliden area, commissioned in 2016, electrical consumption was reduced by 54% and the propane consumption by 21%. Ventilation on Demand means that the ventilation is real-time adjusted depending on where people and machines are working in the mine. Large energy reductions could be accomplished without impairing the working environment.

In its smelting operations, Boliden strives to take advantage of excess heat from the processes, transforming it either to electric power or supplying it for use in external district heating or steam deliveries. In 2016, 2,205,000 (2,117,000) GJ of heat was used internally, and 3,157,000 (3,234,000) GJ was delivered externally for use in district heating systems.