For mining clients

Mining is one of South Africa’s biggest industries, unfortunately, most mineral substances that were closer to the surface have been extracted and are no longer available. For this reason, mining operations are required to dig deeper for valuable underground materials.

As miners go deeper, enormous amounts of energy are used to power equipment and operate onsite vehicles.

Owing to the increase in energy requirements, CNG has increasingly become an energy source of great preference. An increase in energy consumption consequently leads to an increase in operating costs.

The price of CNG does not increase with oil and petrol prices. A logical fuel option for large energy consumers who are looking to generate profit without compromising on quality and time.

Digging deeper into the benefits, here are the top 5 benefits of switching to Virtual Gas Network:

  1. It is cheaper than traditional energy sources
  2. It is better for the environment
  3. Versatile and adaptable systems
  4. There is an abundance of Natural Gas
  5. Costs do not increase with fuel costs

The switching process

The real gold behind switching is our product offering. Virtual Gas Network has the ability to customise our product offering around the needs of an individual site. This allows us to accommodate mining operations ranging from the biggest in the world to smaller localised operations.

CNG can be used for:

  • Above ground transportation fuel
  • Process plants requiring heating
  • Production processes requiring gas
  • Conversion to electricity via generators
  • Staffing compounds as
    • Fuel for food production
    • Heating for geysers
    • Power requirements via generators

Unpacking the cost savings

Operational downtime for mines equals loss, no power means no production. The electricity costs increases on use and under high demand additional tariffs are added – in effect doubling the R/kWh cost and bill.

Laetitia Jansen van Vuuren, Technologies Product Engineer at Energas Technologies outlines an example on the cost math behind the switch:

If a small-scale mining operation uses 60 500 kWh for a certain period, and the rate is R1.26/kWh, the total consumed cost is R76 230. However, once the demand and network charge is added to the energy cost, the total bill is R135 500. The effective rate for power consumed is therefore almost doubled to R2.24/kWh when additional costs are factored in. The R2.24/kWh is equal to R622.22/GJ, where GJ (Gigajoule) is a common energy unit. explains Jansen van Vuuren.

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