The Top 5 Economic Benefits of Hiring Multi-Megawatt Power Plants

An increasing number of industrial companies and businesses around the world are looking for various means to streamline their operations, minimize operating costs and improve their bottom line, and at the same time maintain their competitiveness.

One area in their operation that industrial companies and businesses can optimize is their energy supply and usage. It is essential that industrial companies not only manage their power utilization and energy efficiency but also assess the cost of their principal electricity source, be it from the national grid or from their own power generation facility. This is particularly critical for industrial companies operating in locations remote from the national grid, like manufacturing plants, mines, and oil & gas facilities. These companies should keenly evaluate the cost benefits of various available power supply solutions, among which are purchasing their own power generation facilities or partnering with a multi-megawatt temporary power provider.

There are several factors that come into play when choosing an appropriate power supply solution. Aside from cost, there are other considerations like timing, duration of requirement, availability of manpower and know-how, and associated servicing and maintenance. At first, investing in a proprietary power generation facility may seem optimal, but industrial companies and businesses need to closely evaluate the merits of all options available.

Here is a run-down of five of the most notable benefits of renting multi-megawatt power plants:

1. No need for large capital expenditure

When industrial companies and businesses choose to hire multi-megawatt rental power plants, they will avoid making large capital expenditure and will not be constrained to commit a significant amount of their company’s working capital to a fixed asset (in this case, a power plant). This proposition will improve their cash flow and facilitate their financial forecasting because they can pay for the rented electricity from their operating expenditure over a guaranteed payment schedule.

In addition, renting multi-megawatt temporary power plants offers the flexibility to increase or decrease the power capacity, or extend the rental period, if required.

2. Avoid associated costs

Industrial companies and businesses should be aware of the associated costs involved in purchasing a power plant. Among these are insurance, spare parts, and ancillary items, among others. These are unavoidable additional purchases they need to make to ensure that the power plant is efficiently working and delivering the desired amount of power.

In the case of rental power plants, all spares and ancillaries are taken care of by the temporary power provider, making budgeting and financial forecasting easier for industrial companies and businesses. Simply put, when hiring multi-megawatt power plants, everything related to operating and maintaining the plants is the responsibility of the power service provider so the customers can concentrate on running their businesses.

3. No need to hire new engineers or technicians

Power plants should be operated by skilled and trained engineers and technical professionals. In most cases, industrial companies and businesses purchasing their own power plant will also need to hire new staff members to run the power plant. Not only will this represent an associated cost, but hiring engineers and technicians to work in remote locations will have its own share of challenges.

This can be avoided by partnering with a reputable temporary power provider. Rental power companies, like Altaaqa Global Caterpillar Rental Power, have expert, Caterpillar-certified engineers and technicians who will take care of operating and maintaining the power plants throughout the duration of the contract.

In addition, they are also able to provide training to the customers’ own engineers and technicians so the latter can enhance their knowledge of power generation and be able to play vital roles in operating the customers’ own plants, if need be.

4. Complete demobilization

One other distinct benefit of hiring multi-megawatt power plants is that the plants can be completely demobilized when the need for power has passed or when the contract is finished. This means that there will be no customer-owned permanent power facility or equipment left that will require constant maintenance or servicing. This ultimately indicates that when the requirement for prime or supplemental electricity is finished, the expenditure associated with it also stops.

5. Complete power solutions

Rental power companies, like Altaaqa Global Caterpillar Rental Power, offer more than generators: They provide integrated energy solutions. From meeting the customers in order to precisely understand their requirements; to designing the power plants; delivering the required equipment at site; installing the power plants; commissioning, operating, maintaining and servicing them; training the customers’ own engineers and technicians; through to demobilization, multi-megawatt temporary power providers work to provide their customers 100% peace of mind so they can concentrate on growing their business.

Talk to us to find out how multi-megawatt temporary power plants can help you optimize your processes and solve your power supply challenges. E-mail us at info@altaaqaglobal.com or sales@altaaqaglobal.com. Alternatively, you can call us at +971 4 880 8006.


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Temporary power solutions touted as cost-effective option for mines

The global mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand and suppressed levels of economic growth in established markets, many mining companies are striving to remain buoyant, says temporary power solutions provider Altaaqa Global chief commercial officer Majid Zahid.

Speaking on the sidelines of the 2017 Investing in African Mining Indaba, in Cape Town, he noted that in miners’ quest to emerge victorious from the recession, many of them had implemented cost-cutting initiatives aimed at ensuring maximum customer value with fewer resources.

“Others have chosen to be cautiously proactive and embarked on exploration programmes in a bid to boost long-term profitability. Some have turned to technology to optimise processes and facilitate existing methods,” Zahid added.

Zahid commented that “going lean” had become a significant trend in the industry, as mining companies sought to concurrently reduce workforce numbers, capital and energy intensity; exploit growth opportunities and ensure maximum value for their products and services.

He believes that power generation and supply choice is a part of mines’ operations that could significant alter the profile of their capital expenditure.

“Electricity remains the life-blood of mine sites worldwide. However, with the current economic situation, mine operators cannot afford to devote a large portion of their scarce capital to a major expenditure, like building a permanent power plant. Considering this, mine operators can instead choose to hire multimegawatt temporary power solutions,” Zahid said.

He noted that a consistent, dependable and sufficient supply of electricity was of vital importance throughout the life cycle of a mine operation. “Temporary power plants can adequately provide for the electricity needs of a mine site. They can power camp sites during prefeasibility, feasibility and exploratory stages and support the establishment of the mine operation after a successful exploration,” Zahid highlighted.

He added that temporary power plants could also provide power to a mine’s machinery and the processing plants, as well as its temperature-control equipment.


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*The article is originally published in www.miningweekly.com (http://www.miningweekly.com/article/temporary-power-solutions-touted-as-cost-effective-option-for-mines-2017-02-09)


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Africa’s Mining Industry Preps for Coming Growth

The year 2016 was a breakout year for mining, as the industry witnessed the advent of the initial signs of its recovery. The industry marches on to 2017 with renewed energy and confidence, all set to ride the coming growth wave. Is the cycle of uncertainty really over for mining? Majid Zahid, Altaaqa Global, in a free-wheeling conversation.

Majid Zahid, Chief Commercial Officer, Altaaqa Global

The year 2016 was a pivotal year for the global mining sector. 

Last year, the industry saw nascent signs of recovery and growth, spurred by strengthening commodity prices, revitalized exploratory activities, and re-engineered operational and financial strategies. 

The industry, therefore, rings in 2017 with heightened optimism and a fervent hope that the much-anticipated next growth wave finally comes. 

The wait may be over, as the green shoots are gradually emerging: Commodities has returned to a bull market and many mining companies are seeing a consistent recovery in value. In fact, 2017 is touted to be an encouraging year for mining stocks, buoyed by increased free cash flow, positive earnings momentum and the prospect of distributing excess capital to shareholders. 

Indeed, mining’s recovery was never a question of “if”, but rather of “when”. And for many mining industry players, the “when” starts now. 

“From the standpoint of a power solutions provider”, says Majid Zahid, Chief Commercial Officer of global multi-megawatt temporary power provider Altaaqa Global Caterpillar Rental Power, “we observe that the industry, together with its allied stakeholders, is actively preparing for the growth cycle at hand. 

“For example, an increasing number of mining companies have resumed funding new and expansion projects in the interest of capitalizing on the expected upturn. Investors are once again enticed to finance various segments of the industry, riding high on its impressive showing in 2016.”

Zahid also notes that governments have ramped up their support for mining companies in terms of exploring local and cross-border opportunities by allocating significant funds for mining activities and eliminating obstacles in doing business.

“Looking at the trend,” says Zahid, “the next few years may see the establishment of new mines and the expansion of a number of existing mines. Then, more than ever, electricity will be essential in powering their operations.

“Be they nascent mine sites or established mine operations looking to grow, our multi-megawatt temporary power plants will be able to satisfy their power demands. Our power plants are scalable so they can provide the exact amount of electricity needed by mine sites of any size.”

Zahid says that temporary power plants also represent an excellent choice for mining companies looking to explore new opportunities in remote sites. “Rental power plants can be delivered and installed anywhere in the world, so mining companies can rest assured that wherever they are, we can provide them power.” He says that the latest rental power systems have cutting-edge technologies that allow them to shift operational mode in minutes, and to directly connect to the grid even if sub-stations are absent. 

He, however, sounds a caveat. “Though the industry appears to be on its way to recovery, mining companies should still, to a certain extent, practice caution, especially in terms of utilizing their capital.”

Zahid endorses the view that turning to temporary power plants cushions mining companies from making huge investments in permanent infrastructure, like power generation facilities. “For a mining company, it may not make sense to make an outright investment in a permanent power plant, especially during the formative stages of a mine or the initial phases of a mine development or expansion. These are crucial times in a mine operation when its future of is still uncertain.” 

Zahid says that by choosing to rent power during these stages presents a win-win situation for mining companies. “When the operations grow, they can choose to add modules to the temporary power plant to increase its capacity. In case the project proves unsuccessful, the rental power plants can be easily demobilized, leaving no permanent system unutilized or that will need constant maintenance or repair.”

Altaaqa Global Caterpillar Rental Power is presenting the latest technologies in rental power generation at the 2017 Mining Indaba – the world’s largest mining investment conference. The company’s executives welcome you to booth 924, from the 6th through the 9th of February.

The Indaba, held at the Cape Town International Convention Center in South Africa, has attracted participation from heads of states, high-ranking government officials, global mining companies, technology and service providers and other significant stakeholders. 

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The Latest Mining Industry Trends: An Analysis for 2017

‘Mining will not recover; it will evolve’

Being cyclical, the revival of the mining industry was never a question of ‘if’, but rather of ‘when’ and, more importantly, of ‘what’. When will the industry emerge from the downturn in the face of lengthening cycle times? What kind of mining industry will resurface from the ruins of the recession? In an exclusive interview, Majid Zahid, Group President of the Zahid Group's Energy Division, under which is temporary power provider Altaaqa Global, discusses the crucial role that electricity and technology played in the industry’s observed gradual resurgence.

The mining industry is enduring a period of great uncertainty. In the face of extreme market volatility, stagnant commodity prices, weak demand for products, and suppressed levels of economic growth in established markets, many mining companies around the world are striving to remain buoyant.

In their quest to victoriously emerge from the recession, many miners have implemented cost-cutting initiatives aimed at maximizing customer value with fewer resources. Others have chosen to be cautiously proactive and embarked on exploration programs in a bid to boost long-term profitability. Some have turned to technology to optimize processes and facilitate existing methods.

Part 1: Streamlining operations

Going lean has now become one of the central trends in the industry, as mining companies seek to concurrently reduce manpower, capital, and energy intensity; exploit growth opportunities and maximize the value of their products and services.

“In a highly volatile market”, says Majid Zahid, Group President of the Zahid Group's Energy Division, under which is leading global temporary power provider Altaaqa Global Caterpillar Rental Power, “it is essential for mining companies to strike a balance between controlling costs and capitalizing on growth prospects and profitable opportunities. It is, therefore, imperative for them to ensure the efficient utilization of their working capital.”

Majid Zahid, Group President, Energy Division, Zahid Group

Zahid is of the view that power generation and supply represents an area where mining operations can make significant adjustments to their capital expenditure. “Electricity,” he says, “remains to be the life-blood of mine sites anywhere in the world. However, with the present economic situation, mine operators cannot afford to devote, rather strap, a large portion of their scarce capital to a major expenditure, like a permanent power plant. Considering this, mine operators can instead choose to hire multi-megawatt temporary power solutions.”

A consistent, dependable and sufficient supply of electricity is vital throughout the life-cycle of a mine operation. “Temporary power plants,” says Zahid, “can adequately provide for the electricity needs of a mine site. They can power camp sites during pre-feasibility, feasibility and exploratory stages, and support the establishment of the mine operation after a successful exploration. They can provide power to the machinery and the processing plants, and also to the temperature-control equipment. Obviously, they can also provide the necessary power for expansion.”

“Multi-megawatt temporary power plants could not be more relevant to the mining industry than in these times,” says Zahid, and adds that renting power is a logical decision for any miner looking to effectively streamline its operations.

“For instance, in this economic climate, one cannot overstate the importance of precise allocation of funds and of better management of financial resources. A key benefit of renting power is that payment schedules are fixed and regular over a contracted term. This can help mine operators formulate accurate financial forecasts.”

“Along this line, mining companies should also be mindful of associated costs that come with building or purchasing a permanent power plant.” He calls to mind the cost of spare parts and ancillary, which, he says, are indispensable to the continuous operation of a permanent power plant. “When a mine operator goes for the rental option, all spares and ancillary will be provided by the temporary power company.”

Zahid says that renting multi-megawatt power plants can also prove beneficial for mining companies seeking to optimize their manpower resources. “Mine operators will be happy to know that in hiring power plants, they will no longer need to employ new operators or allocate or re-train existing staff members to manage the plant. Temporary power providers will provide the necessary expert engineering services to ensure the faultless operation of the power station.”

Temporary power plants can also assist in reducing the energy intensity of mine operations. “Hiring power plants will preclude the chances of generators being under-utilized because the capacity of rental power generation equipment can be increased or decreased with respect to the demand of specific mine processes.”

Zahid says that as conventional power plants are usually specified to meet the peak demand of a particular site, they are left under-utilised when the power requirement decreases. “When a power plant is running at part-load, it consumes fuel less efficiently. This will no longer be the case with rental power plants on board, thanks to their flexibility and scalability.”

Part 2: Refocusing on exploration

At the peak of the industry recession, many mining companies dramatically slashed their exploration budgets in the interest of making quick cost savings. SNL Metals and Mining, a global provider of mining information and analysis, supports this observation as it reports that global exploration expenditure declined by 26% in 2014, while exploration budgets nosedived to USD 11.4 billion from USD 22 billion in 2012.

However, industry insiders, like Deloitte, a global provider of financial advisory services, caution that huge cuts in growth CapEx and exploration budgets may have extensive adverse consequences for the miners and the industry at large. Sustained exploration, they say, position mining companies for growth once the market turns. Thus, they warn that foregoing the opportunity to stake early claims may be counter-productive to long-term profitability.

And the industry appears to have heeded their advice, as mining companies and governments have gradually re-focused on exploration activities and identification of new potential assets.
“Exploration”, says Zahid, “is the growth stimulus of the resources sector. Hence, having sufficient power to sustain this crucial activity is fundamental.”

Zahid says that renting power during the exploration stage of a mining operation yields myriad advantages. “By hiring temporary power plants, mining companies will have the freedom to start with a small power plant, and then grow as operations expand. When the long-term prospect of a project is still uncertain, it may not make sense to invest in permanent facilities. Renting power, therefore, protects companies from the uncertain future of mining projects at the exploration stage.”

He also speaks about the latest temporary power technologies which make rental power plants operable anywhere in the world.  “Rental power plants are highly suitable for exploration activities in remote areas because they are containerized and modular, so they are easily transported and installed. The latest-generation temporary power plants have state-of-the-art switching and transformation systems that give them the ability to connect to any location’s grid, regardless of its age, quality or condition. This is possible even without a sub-station, as the same systems allow the power plants to assume the role of a sub-station and connect to available overhead lines or transformers.”

“Temporary power plants also have cutting-edge electric power control and protection systems, which allow them to switch operational mode, from grid to island, to base load or to standby at a push of a button in mere minutes. This is particularly useful for mining companies whose exploration activities take place in areas unconnected to the grid.”

Part 3: Embracing Innovation

In recent years, the mining industry has seen a slew of technological innovations. Technologies once regarded as tangential to the industry are now being tailored to respond to the needs of mining companies. Many of these innovations revolve around automation and the technological optimisation of established processes, primarily in response to the industry’s need to reduce costs and ramp up operational efficiency. And while some mining companies have opted to remain conservative in terms of uptake, many miners are gradually embracing the available technologies in a bid to future-proof their operations.

In a recent interaction with GineersNow, a global engineering magazine, Jean Savage, Chief Technology Officer and Vice President for Innovation and Technology Development at Caterpillar, affirms the crucial role that equipment manufacturers play in shaping the future of mining operations: “Caterpillar has spent over 90 years committed to innovation and technology that help our customers succeed. Most of this innovation has been “in the iron”. Now, our focus has to be on making the iron ‘smart’.”

“Making the iron ‘smart’ means bringing digital solutions designed to improve productivity, efficiency, safety and profitability to our customers. This is not technology for technology’s sake. It is technology that’s focused on solving, and even anticipating, customer problems. We are taking the machines, locomotives, engines and parts we’re so well known for and making them smarter, while also equipping the people who operate them with data that makes them more productive, enhances their safety and improves sustainability.”

Zahid concurs: “Caterpillar believes that be an innovator, a company must be working directly in the service of its customers. As part of the Caterpillar family, we at Altaaqa Global are proud to be well positioned to offer our clients in the mining industry the latest technologies in temporary power generation.”

“For example, it is now possible for our engineers to monitor the status and performance of our engines from any location through Cat Connect. This gives us, temporary power providers, relevant insights on the go, so we can better manage our equipment, optimize their performance or perform preventive maintenance, if necessary.”

“There is also the Cat MicroGrid Solutions, which now allows renewable solar and wind power systems of any size to be delivered to and installed in literally any location on earth. In tandem with our temporary power plants, the solution guarantees a reliable, sufficient and sustainable power supply to any mining operation anywhere in the world.”

“There are also allied technologies gaining traction within the industry. Among these are drones, which can now be used to survey mining sites before breaking ground; 3-D printers, which can now print replacement parts; and augmented reality, which can now be used by technicians to simulate repair cycles. As these technologies are developed in the coming years, we at Altaaqa Global will definitely look into possible ways of integrating them into our systems and processes to further improve our products and enhance the service we deliver to our customers.”

“The list of technologies on offer goes on. And as equipment manufacturers and service providers continue to closely work with their customers to learn more about what they need to drive the growth of their businesses, the number of available technologies will continuously increase.”

The Bigger Picture

Just as the industry went tumbling down on the heels of the boom, industry insiders believe that it is poised for a gradual recovery in the coming months. The green shoots are emerging: Commodity prices are strengthening across the board, commodities has returned to a bull market, and many mining companies are seeing a consistent recovery in value. While the market remains cautious, it welcomes the early signs of the industry’s revival.

But perhaps, ‘recovery’ does not aptly define mining’s next cycle. The recent downturn pushed the industry to redefine itself. In the face of adversity, many mining companies adopted a fresh take on how they operate, allocate resources, engage with technology and seize growth opportunities. What were originally corporate strategies implemented to survive the so-called winter have disrupted the industry and, to a large extent catalyzed its transformation. With miners rising from the downturn stronger and smarter, the next cycle of the mining industry will not only be a recovery – it will be an evolution.


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Sources consulted:
1. “Top 10 Trends for Mining in 2016”. www.australianmining.com. 17 August 2016.
2. “Caterpillar: More than Just a Business”. GineersNow. Issue 9. November 2016.
3. “Big Data for All”. www.caterpillar.com.

Why Do Mines Consume Enormous Amounts of Electricity?

Mines require copious amounts of electricity to support various functions. In fact, owing to the huge amount of work and processing that go into production, mining is one of the most energy-intensive industries in the world, accounting for approximately 5% of the global electricity consumption.

To further illustrate, in Chile, considered as the world’s largest copper producer, mining is responsible for more than 20% of the country’s total power consumption. In Zambia, mining accounts for a whopping 50% of the country’s power utilization.

Obviously, no mine can operate without electricity. And without mining, the world will see no houses, skyscrapers, vehicles, airplanes, mobile phones, laptops, computers and a gazillion other things. But, have you ever wondered just how much electricity is required to power a mine throughout its lifetime?

Let’s have a quick look at some of the energy-intensive work that takes place in a mine. There is blasting open the earth, crushing and grounding millions of tons of ore, and chemically processing the ore prior to export. Round-the-clock. Throughout the year.

Then, there are the electricity-gobbling pieces of machinery, like rope shovels. Rope shovels alone are said to require an average of 11,000 KW throughout its 20-hour operation.

There are also additional energy-consuming factors which vary from mine to mine. Let us say, the presence of underground water. Do you know that pumping out millions of liters of water every day consumes an amount of electricity so huge that it is reported by some mining companies as the largest component of their energy costs?

Electricity is vital to almost every function of a mine that having sufficient power at the site is non-negotiable. Unfortunately, many mine sites across the globe have to cut back on power consumption because of power shortages, load shedding or a limited access to a reliable power supply. Though it should be possible to reduce power consumption in some of the perceived “non-essential” areas, this can only be done for so long before it begins to affect the entire operation and, thus, the production levels.

In response to this risk, many mining companies are deciding to invest multi-millions in building their own power generation or transmission facilities. But obviously, building one’s own energy infrastructure is tremendously expensive, and this can easily jack up the capital cost for a new project. And given the current volatile market condition, and the uncertain future of nascent mines, making such a huge non-core investment may not make sense altogether.

Here, then, lies the conundrum for mine operators: Do they build their own power facility to potentially provide ample electricity to their sites but, in doing so, make a huge capital investment; or be content in reducing electricity consumption in their sites and save money, but miss out on maximizing the site’s production levels?

The truth is, mine operators are not limited to just these two choices.

For example, they can choose to rent power plants instead of building their own. In doing so, they will not have to devote, rather strap, a huge part of their working capital on a non-core investment.

During the feasibility and exploration stages, renting power plants will give them the freedom to start with a small power plant, which they can grow as their operations expand.

Can temporary power plants support mine operations even in remote areas? Sure.

Rental power plants are easily transported from and to anywhere in the world and can function in any site no matter where on Earth it is situated. Temporary power plants can directly connect to any site’s grid even without a sub-station. They can also switch operational modes from grid to island, to base load or to standby at a push of a button in mere minutes, so they can function in mine sites either as the sole source of power or in sync with the grid.

Bottom line, going for the rental option will significantly reduce a mining project’s estimated capital cost and will cushion mining companies from the impact of making a huge non-core investment in this highly volatile mining market.

So, mines consume colossal amounts of electricity because of the number of energy-intensive functions that go into their operations. And, even as the industry faces risks relating to electricity supply and access to reliable energy sources, there are power generation technologies available, like temporary power plants, which can help mine operations sustain profitable levels of production.


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Sources consulted:
“Why mines consume such large amount of electricity”. Zambian Mining Magazine. www.miningnewszambia.com. 16 October 2016.

How Can Rental Power Help Grow Mining Operations?

The mining industry has played an integral part in the history and progress of countries and communities where it exists. Many mines sites, however, are in remote locations, where power infrastructure may not exist or are still developing, or where a reliable connection to national grids can still be improved. This poses a challenge to mine operations, established and developing alike, particularly in light of the fact that without access to a sufficient or reliable source of electricity, mining companies run the risk of losing on profit, valuable production time or opportunities for growth.

Temporary power and the Mining industry

It is most advantageous to specify temporary power during the pre-feasibility/feasibility stage of mining operations, when mining companies are applying for finance. This could help them secure financing for the project.

Temporary power solutions can support the growth phase of mine operations, because they provide flexibility, scalability, risk mitigation and cost minimization. Specifying the services of temporary power providers during this stage will preclude the need for mining companies to spend scarce CAPEX in procuring their own generators or building permanent power facilities. With temporary power, mines can opt to start small, then add power capacity as their operations grow. They can pay for the rented electricity from their operational profits.

As mine operations develop and become established, mining companies will eventually find benefit in building their own permanent power plants, which, however, may take a substantial amount of time to complete. While the permanent power plants are being constructed, temporary power can sustain the mine operations. As soon as the permanent facilities are constructed and fully operational, mining companies can simply end the contract, and the temporary power plants will be immediately demobilized. This way, mining companies will not have surplus equipment, because everything was only rented.

Temporary power solutions are also beneficial for ongoing mine operations, in times of power shortage or emergency situations. When mine operations need additional power to sustain production, temporary power providers can easily deploy and install temporary power plants at their sites in a matter of days to supply continuous and reliable electricity.

As commodity prices remain depressed, and full economic recovery continues to be elusive for developed and emerging countries alike, mining companies are in the midst of challenging times. In these times, mining companies cannot afford to subject their operations at risk, owing to lack of funds or long project lead times. Renting power does not require spending scarce CAPEX that is usually related to building permanent power plants. Temporary power plants can also be tailored to any power or voltage, so there is no longer a need to build support power infrastructure to run the rental plants. Additionally, installing temporary power plants will only take days, whereas constructing a permanent power infrastructure may span longer periods of time. This means that in a short time, mine operations can be up and running, and producing.

Hiring electricity can prove advantageous for both established and nascent mine operators. It can provide operational flexibility, enhance a site’s productivity and help optimize its processes without the need for a long lead time and a sizeable capital expenditure. As mining companies realize the benefits of hiring power, it will no longer be uncommon in the coming years to see larger temporary power plants being hired on a longer-term basis within the mining industry.

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How Much Do You Know About Renting Electricity?

You know that you can rent a car, a flat, or even songs and movies. But, have you heard about renting power?

Renting affords numerous advantages, particularly to transient users, or those that use a particular item for a limited period of time. Think about renting flats, cars, movies or costumes. When you don’t see yourself living in a city for a long period of time, will you still invest in buying a home? When you expect to sparingly use a car, will you still spend on acquiring one and shell out for servicing and maintenance throughout its lifetime? For someone who simply likes to watch a new movie and does not fancy collecting films, will it make more sense to rent it than to actually buy a copy of it? Would you like to wear that Dracula costume every year to a Halloween party? I guess not.

There are many things that you can rent, but have you any idea about renting electricity? Yes, electricity can be rented, and it is a viable solution to energize numerous communities around the world that still lack access to reliable electricity. So, how does that work?

Basically, when a power utility company, a manufacturing firm, a mine operator or a government chooses to rent electricity, what they actually get is a complete, temporary power plant, designed, tailored, delivered, installed, operated, managed and serviced by a temporary power provider. All the equipment are owned by the provider, and the customer does not have to nvest in anything related to capital. Similar to renting any other item, the customer only has to pay for the product or service while he is using it – or in this case, for the electricity generated during the contract. This means that the customer can simply pay for the services of the rental power provider from his OPEX or operational expenditure.

Rental power plants are unlike permanent power plants. They are made up of modular power equipment, generators, transformers and other ancillaries, and can be simply connected “plug-and-play”-style. Because of this, they can be easily delivered from and to anywhere in the world, and can be made operational within days. Customers need not wait for years or decades obtaining approvals, financing and waiting for the completion of construction. Remember when you rented a car? The car was ready and was immediately handed over to you, right? And when you rented a flat? Did you have to wait for years for the building to be built before you could move in? No. Upon making the first tranche of payment, the keys to the unit were readily given to you.

When the need for supplemental electricity passes, a rental power plant can be simply uninstalled and demobilized, of course, by the temporary power provider. This means that there will be no permanent infrastructure left behind that will need constant maintenance and servicing. Simply put, the utility provider, the mining company, the manufacturing firm or the government stops spending when the need for supplemental electricity is no longer there.

To summarize, here is an illustration of what is involved in renting electricity:

We said above that renting electricity is a perfect option for energizing communities around the world that still do not enjoy the benefits of reliable electricity. Turning to temporary power solutions is a fast, efficient, safe and cost-effective way to gain access to consistent electricity. As governments, utility providers and allied stakeholders implement long-term energy plans, temporary power plants, working alone or in tandem with other sources of electrical power, can urgently provide the required electricity anywhere and anytime it is needed. 

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Altaaqa Global and Caterpillar Team Up to Power Cameroon and Empower Locals through Customer Development Program

The program through Caterpillar University helps solve Cameroon’s energy challenge while facilitating the transfer of engineering and advanced technical knowledge to local professionals at state-of-the-art 50 MW project

DUBAI – Altaaqa Global Caterpillar Rental Power, a leading global temporary power solutions provider, and Caterpillar Inc. have developed a solution to one of Cameroon’s biggest challenges: reliable energy access. This solution is not only about transferring power but also knowledge and prosperity across the African country.

In 2015, Altaaqa Global installed a 50 MW natural gas power plant in Cameroon’s most populous city, Douala, as an immediate solution to the city’s chronic electricity shortage. The power plant added reliable power to Cameroon’s grid, and provided its people and industries with a new, reliable source of electricity.

Just as important as the power was ensuring a local team of highly trained professionals was able to oversee the operation of the power plant. Altaaqa deployed Caterpillar University, Caterpillar’s proprietary training platform, to launch a Customer Development Program. The pilot program, which will continuously run for one year, is offered to a team of select local engineers and technical professionals from Altaaqa Global’s client Eneo, Cameroon’s integrated utility provider.

The Customer Development Program

One of the key pillars of Altaaqa Global's sustainable business model is extending employment and learning opportunities to local communities where it has projects, with the aim of enhancing their skills and transferring world-class industry knowledge to the local workforce.
To facilitate the transfer of knowledge and skills to Eneo’s team of local engineers and professionals, Altaaqa Global launched a tailored customer training program, in cooperation with Caterpillar University.

The program features three methods of instruction: classroom teaching, online instruction and on-the-job mentoring with Altaaqa Global’s Cat-certified in-house technicians. To encourage a better understanding of technical concepts taken up in the classroom, Altaaqa Global enrolled the Eneo engineers in Caterpillar University, which features expert-curated modules on service, safety and equipment operation.

For the purposes of the program, Altaaqa Global’s training engineers designed a learning plan that included carefully selected modules available on Caterpillar University. Considering their relevance to the participants’ tasks at site and to the engines installed for the project, the trainers hand-picked specialized courses on Environmental, Health and Safety (EHS) and Engineering Service.

At the end of the year-long program, subject to the completion of all necessary on-line modules and a satisfactory performance in the final evaluation, the participants will be awarded a Level 1 Preventive Maintenance (PM) Technician certificate, and will thus be eligible to progress to second-level training. Altaaqa Global will conduct the program on a continuous basis, such that the training will be offered to every new team of engineers and technical professionals from Eneo.

Commenting on the motivation behind the training program, Peter den Boogert, CEO of Altaaqa Global, said: “In all of our projects, we provide more than electricity; we offer training and employment opportunities to locals. In fact, 95% of our site employees in our projects around the world is composed of locals.”

A commitment to sustainable progress

The training program is in accordance with Caterpillar’s sustainability strategy, which aims, among others, to promote economic and social development in areas where it operates. The company believes that an effective way to encourage sustainable social and economic progress is to educate local professionals on globally recognized industry best practices.

Against this backdrop, Kim Hauer, Caterpillar Vice President with responsibility for the Human Services Division and Chief Human Resources Officer said: “At Caterpillar, we believe in empowerment through education and transfer of knowledge. So, we work together with our global dealers, like Altaaqa Global, to provide tailored customer training solutions. Such initiatives have been proven to enhance customer efficiency, global competitiveness and help deliver sustainable progress around the world.”

Commending Altaaqa Global’s customer development initiatives, Doug Oberhelman, Chairman and CEO of Caterpillar Inc., said: “Altaaqa Global’s successful customer development program is a testament to the company’s commitment to support and improve the communities it serves. Altaaqa Global provides solutions that power and light the world.”

Mr. Fahad Y Zahid, Chairman of Altaaqa Global and Executive Vice President of the Zahid Group, avowed the company’s continued dedication to its mission of inspiring progress and prosperity to people, businesses and communities. “Since its inception, Altaaqa Global has looked beyond profit. We have always aimed to play an active role in spurring growth and progress not only by providing a reliable supply of electricity, but also by transferring knowledge to locals. We hope that the Customer Development Program yields a globally competitive workforce that will drive the continuous growth of Cameroon.”

Altaaqa Global and Caterpillar have produced a documentary video on the program, showcasing the effectiveness and benefits of Caterpillar’s tailored customer training solutions to dealers and customers all over the world. The video was premiered at the 2016 Africa Energy Forum in London, UK in late June, and was seen by energy ministers and other energy stakeholders from around the world.

Watch the video, here: https://youtu.be/8M5qA1Pz7Ys

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About Altaaqa Global
Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed.

http://www.altaaqaglobal.com

About Zahid Group
Zahid Group represents a diverse range of companies, offering comprehensive, customer-centric solutions in a number of thriving industries. Some of those include construction; mining; oil & gas; agriculture; power, electricity & water generation; material handling; building materials; transportation & logistics; real estate development; travel & tourism; waste management & recycling; and hospitality.

http://www.zahid.com

About Caterpillar Inc.
For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent.  Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets.  With 2015 sales and revenues of $47.011 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.  The company principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment.

http://www.caterpillar.com

About Eneo Cameroon S.A.
Cameroon’s long-term electricity operator, Eneo (formerly AES-SONEL) is a semi-public company with 56% shares owned by Actis Group and 44% by the State of Cameroon. Eneo has an installed generation capacity of 968 MW. Its transport network connects 24 substations and includes 1,944.29 km of high voltage lines, 15,081.48 km of medium voltage lines and 15,209.25 km of low voltage lines. Its distribution network consists of 11,450 km of lines of 5.5 to 33 KV and 11,158 km of lines of 220-380 kV. Eneo has more than 973,250 customers, of which approximately 45% live in the cities of Douala and Yaoundé. Eneo employs 3,698 permanent staff.

http://www.eneocameroon.cm


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To Rent or Go Permanent: A Mining Perspective

By: Julian Ford, Chief Commercial Officer, Altaaqa Global CAT Rental Power

The mining industry has played an integral part in Africa’s history and progress. Though currently weathering unfavorable economic circumstances, Mining will continue to be important in the progressive growth of the continent’s economy.

Africa is instrumental in providing the world with precious metals and commodities, including platinum, diamond, gold, copper, steel and aluminum. Many of the mines sites in Africa, however, are in remote locations, where power infrastructure may not exist or are still developing, or where a reliable connection to national grids can still be improved. This poses a challenge to mine operations, established and developing alike, particularly in light of the fact that without access to a sufficient or reliable source of electricity, mining companies run the risk of losing on profit, valuable production time or opportunities for growth.

In coming up with a solution to ensure a consistent supply of electricity to the sites, mining companies often find themselves choosing between building a permanent power plant or turning to temporary electricity. Julian Ford, Chief Commercial Officer of global power solutions provider Altaaqa Global, shares his insights on how temporary power solutions can benefit mine operations especially during these economically trying times.

Why rent?

It is most advantageous to specify temporary power during the pre-feasibility/feasibility stage of mining operations, when mining companies are applying for finance. This could help them secure financing for the project.

“Temporary power solutions can support the growth phase of mine operations, because they provide flexibility, scalability, risk mitigation and cost minimization,” says Ford. Specifying the services of temporary power providers during this stage will preclude the need for mining companies to spend scarce CAPEX in procuring their own generators or building permanent power facilities. “With temporary power, mines can opt to start small, then add power capacity as their operations grow. They can pay for the rented electricity from their operational profits,” he says.

As mine operations develop and become established, mining companies will eventually find benefit in building their own permanent power plants, which, however, may take a substantial amount of time to complete. “While the permanent power plants are being constructed,” says Ford, “temporary power can sustain the mine operations. As soon as the permanent facilities are constructed and fully operational, mining companies can simply end the contract, and the temporary power plants will be immediately demobilized. This way, mining companies will not have surplus equipment, because everything was only rented.”

Temporary power solutions are also beneficial for ongoing mine operations, in times of power shortage or emergency situations. “When mine operations need additional power to sustain production, temporary power providers can easily deploy and install temporary power plants at their sites in a matter of days to supply continuous and reliable electricity,” says Ford.

As commodity prices remain depressed, and full economic recovery continues to be elusive for developed and emerging countries alike, mining companies are in the midst of challenging times. “In these times, mining companies cannot afford to subject their operations at risk, owing to lack of funds or long project lead times. Renting power does not require spending scarce CAPEX that is usually related to building permanent power plants. Temporary power plants can also be tailored to any power or voltage, so there is no longer a need to build support power infrastructure to run the rental plants. Additionally, installing temporary power plants will only take days, whereas constructing a permanent power infrastructure may span longer periods of time. This means that in a short time, mine operations can be up and running, and producing.”

“Hiring electricity can prove advantageous for both established and nascent mine operators. It can provide operational flexibility, enhance a site’s productivity and help optimize its processes without the need for a long lead time and a sizeable capital expenditure,” says Ford. “As mining companies realize the benefits of hiring power, it will no longer be uncommon in the coming years to see larger temporary power plants being hired on a longer-term basis within the mining industry.” 

*This article was published in the Web portal of Mining Weekly, South Africa: http://goo.gl/hHUWqa

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Temporary Power Solutions for Growing Mining Operations

One of the ways that can help mining companies secure financing for a project is to specify temporary power solutions during the pre-feasibility/feasibility stage. Temporary power solutions can support growing mining operations by providing flexibility, scalability, risk mitigation and cost minimization.

For more information on how temporary power solutions can benefit mining companies, please visit our website at http://www.altaaqaglobal.com/industries/mining.

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Renting power: Keeping mines thriving through volatility

The mining industry is currently in the doldrums. As commodity prices remain stubbornly depressed, and economic recovery remains elusive for developed and emerging countries alike, mining companies are in the midst of challenging times.

Along with stagnant commodity prices, weak demand for products, low levels of economic growth in established markets, increasing stockholder pressures and employment and social issues, power supply deficit is also one of the mining industry’s most pressing hurdles. Many mine operators around the world have been facing numerous production-related challenges, owing to electricity shortages, not helped by the ongoing El Nino weather phenomenon. Mining companies in Africa, for instance, particularly those located in hydropower-dependent areas, have been experiencing consistent output drops as hydroelectric power facilities fail to generate enough electricity to sustain large-scale mine operations. As a result, mining companies in Africa, established and nascent alike, are at present struggling to maintain profitable production, resulting in job cuts, tighter cash flows and limited capital expenditures.

Hiring the services of a temporary power provider can be an immediate solution to the industry’s electricity-related challenges. A continuous supply of reliable electricity is indispensable in mine operations, be it for exploration, production, climate control or site visibility, and rental power plants can instantly provide the necessary electricity as and when it is needed. Temporary power plants are readily available and are rapidly deployed anywhere in the world where electricity is urgently required. Rental power plants can be tailored to any power or voltage, and the capacity can be increased or decreased according to demand, so mine operators will be able to add additional power modules that will increase the rental power plant’s generation capacity as their operations expand and their power requirements increase.

By opting to rent power, mining companies do not need to spend scarce resources on capital purchase, which is usually required when building permanent power stations. They can also pay for the electricity produced by the hired power plants from their operating revenues. The investment that mine operators will make in hiring electricity has proven to be marginal compared to the cost of foregone business opportunities, lost production time or wasted man-hours. This factor can be very significant at the feasibility stage, when mining companies are applying for finance.

Temporary power plants are containerized, so that they can be delivered to and installed in any mining site anywhere in the world, and be operational in a matter of weeks. They are fully able to function even in remote locations and in sites where traditional power infrastructure, like grids and substations, is outdated, damaged or absent. They can be installed and powered on in a matter of days, so power can be immediately supplied or restored.

Rental power plants are fuel efficient, and can run on diesel, natural gas, or on a combination of the two. Modern natural gas generators are also capable of converting coal mine methane to electric or thermal power, which contributes to the reduction of greenhouse gas emissions.

The mining industry, not only in Africa but also in other parts of the world, is going through tough times prompted by natural and economic circumstances. Hiring electricity can give mine operators a sustainable competitive advantage. It can provide operational flexibility, enhance a site’s productivity and help optimize its processes without the need for a long lead time and a sizeable capital expenditure. Instead of acting in exasperation and fear of the future, and getting lost in a web of operational minutiae, mining companies should draw ideas from allied industries, and give premium to innovation and imaginative solutions.

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Power Up! Q&A with Altaaqa Global's Julian Ford

The February 2016 issue of Construction Machinery Middle East featured the major players in the power projects sphere, including Altaaqa Global. Julian Ford, Chief Commercial Officer, spoke about the challenging industry and shared his insights on the sector's outlook.

What is the background of Altaaqa Global? 

What ‘market gap’ did you set up to target? 

In 2004, Saudi conglomerate Zahid Group formed Altaaqa Alternative Solutions in Saudi Arabia to provide temporary power services to the country. It has grown to be the largest Caterpillar power generation fleet owner in the world, and the premier rental power services provided in the Kingdom.
With the desire to replicate the success of Altaaqa Alternative Solutions on a global scale, Zahid entered into a Global Power Projects (GPP) agreement with Caterpillar and formed Altaaqa Global in 2012. Altaaqa Global was appointed by Caterpillar to deliver multi-megawatt turnkey rental power projects around the world.

Since then, we have widened our geographic coverage, opening branches in Bangalore, India; Nairobi, Kenya and Johannesburg, South Africa. We have also secured several contracts in key regions across the globe, including the Middle East and Sub-Saharan Africa.

Which market segments do you operate in? 

Altaaqa Global owns, mobilizes, installs and operates large-scale rental power plants tailored to customers’ specific applications. We are in the position to rapidly deploy fuel efficient, scalable and reliable multi-megawatt temporary power plant solutions.

Our technologies find application in a wide range of industries, including utility power generation, utility power transmission & distribution, mining, oil & gas, petrochemicals & refineries, government & NGO services, ports & harbours, and process industries.

What’s your current fleet size? 

Altaaqa Global and Altaaqa Alternative Solutions have a combined fleet power capacity in excess of 1,600 MW. The fleet includes generators running on diesel, natural gas or a combination of the two.

Being part of the global Caterpillar dealer network, we also have access to the power generation fleet of our co-dealers anywhere in the world, giving us exceptional fleet capability and flexibility to meet even the largest customer demands.  

Julian Ford, Chief Commercial Officer, Altaaqa Global

You’re supported by Caterpillar dealers around the world. 

What does this mean in practice when it 

comes to mobilising for a big project?  

In addition to our own in-house capabilities, as an authorized Caterpillar dealer, Altaaqa Global has access to the wide range of technical, engineering, logistical and service/maintenance resources of other Caterpillar dealers around the world.

In mobilizing for a project, for instance, we may tap the power generation resources, technical & engineering expertise and logistical facilities of the local Caterpillar dealers where we operate, or of any Caterpillar dealer around the world. We also have access to locally available parts and can call for local maintenance service or technical support. Thanks to this synergy, we are able to provide for a quick and efficient installation of power plants and ongoing support for projects anywhere in the world.

What sort of relationship do you have with Caterpillar’s product development team, when it comes to providing feedback on existing products, modifying your current fleet, or wishlists for new product development? 

As an authorized Caterpillar dealer, we work closely with the Caterpillar product development team to share perspectives of customer requirements in the power rental business. In this way, we expect to further improve our already-competitive position to meet the evolving needs of our customers.

How popular are your gas-driven solutions in the Middle East? Do you see this product sector growing? What are some of the constraints on this sector, and will they be overcome in the foreseeable future? 

Though it is expected that the diesel generator market will continue to grow and that diesel will remain the preferred fuel in the next several years, we are noticing the gradual growth of the natural gas and dual-fuel generator market as natural gas becomes available. The growth of the market is supported by the increase in unconventional gas resources in many countries not only in the Middle East but also in other parts of the world, and by the lower operating cost afforded by running power plants on gas or gas-diesel combination.

In the past, fuel availability and the costs of installing safe and reliable fuel delivery infrastructure have hampered the growth of the natural gas generator market. Today, gas is becoming increasingly available and gas generation technologies progressively find application in bigger and longer-duration projects. The availability of dual-fuel generators, which significantly simplifies the transition from diesel-run to gas-run generators, is also helping overcome these obstacles.

You’ve said that you want to be ‘the leading and the most preferred temporary power solutions provider before year 2020’. What are some of the industry chances you see coming over the next five years? How do you make sure to ‘future proof’ your business? 

The role of temporary power has evolved from being a local, short-term, transactional activity to a major global project-based industry. It is no longer uncommon to see power plants of 100 MW and up being rented on a longer-term basis. We expect that the diesel generator market will continue to thrive, and that the natural gas market will continue to gain traction.

To keep abreast of the opportunities in the coming years, we will continue to hone a highly skilled, motivated & experienced, world-class, power projects team. At Altaaqa Global, we strive to lead the evolution of the industry, and to be recognized as the premier source of innovative technical solutions and the highest level of customer service and support.

Do you see any likely trends in the power projects sector as a result of oil companies looking to trim costs?

While the fact that the prevailing oil price makes generators cheaper to run is an advantage in theory, we have to remember that the requirement for generators is proportional to the rate of economic activity. At present, the prices of oil and commodities are suppressed, and this is having a negative impact on the interest on power generation services. We, however, expect the industry to rebound quickly as and when economic conditions improve.  

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