A new report published by Allied Market Research expects the global mining equipment market to grow to $156 billion by 2022. The report predicts that the market will increase by a compound annual growth rate (CAGR) of 7.9% during 2016-2022.

The study, entitled “World Mining Equipment Market – Opportunities and Forecasters, 2015-2022” states that the Asia-Pacific region comprised the highest revenue of over $50 billion in 2015, followed by Latin America, the Middle East and Africa (LAMEA).

The analysts believe that the increasing demand for electricity generating applications is one of the drivers behind the market growth. With energy generally accounting for 20-40% of operating costs, reducing electricity costs is one of the major objectives of the mining industry.

Vergnet’s integrated renewable solutions enable mining companies to meet their sustainability goals while also providing much-needed electricity generation and reducing their overall energy costs. Vergnet provides clean energy technology to power mines in a range of global locations suitable for the region in which it is situated.In addition, Vergnet’s renewable energy technology can also provide additional income where there is excess energy as this can be redistributed back into the grid.

An example of a mining business that has benefitted from Vergnet’s mining industry solutions is Nyrstar. Nyrstar is an integrated mining and metals business with an underground, poly-metallic mine located in El Toqui, Chile. Like many mining locations, the El Toqui power system is isolated from the regional grid system and Nyrstar enlisted Vergnet to set up a small windfarm in 2010 as an additional power source. The wind farm comprises six Vergnet GEV MP wind turbines, each generating 0.23 MW.

With a rapid project delivery time of only eight months from initiation to commissioning and closure, and official registration and authorisation granted within two months, El Toqui quickly benefitted from the additional resource of a wind farm to diversify power supply and contribute clean, renewable energy to the site.

The wind farm generated 3.4 GWh of power at a cost of $74K and an average cost of $21.6/MWh, contributing to 8.1% of total onsite power generation. The diesel average cost per MWh was significantly higher at around $254.5/MWh and so the wind farm offered a healthy cost saving with clean, renewable energy solutions.

More information on Vergnet’s renewable solutions for the mining industry including wind,solar, hybrid and PV solutions, can be found by exploring the new Vergnet global website. We also invite you to connect with us on our new global Twitter and LinkedIn pages to keep up to date with Vergnet news.