Energy and climate change
Energy is one of the most significant inputs to our operations. In 2013, energy costs accounted for about one-third of our cash operating costs.
As part of our Kinross Way Forward initiative, we are systematically looking for ways to improve energy efficiency, reduce overall energy costs, and reduce associated greenhouse gas (GHG) and other air emissions, in all aspects of our operations.
Our energy strategy manages both supply and demand. On the supply side, many factors influence our ability to secure energy supplies, including global demand, fuels available in a given region, geographic isolation and the possible need for “off-grid” local generation, transmission constraints, and regulatory uncertainties. To meet our needs, we strive to diversify our energy sources where feasible and consider opportunities for renewable energy where economically viable.
On the demand side, our Energy Management strategy includes the following elements:
- At existing operations, we focus on energy efficiency/continuous improvement and optimizing supply (including alternative generation);
- For growth projects, we incorporate energy efficiency from the initial design stage by selecting the appropriate processing technology and efficient equipment. We also take into consideration alternative power and fuel supply options. Decision-making incorporates life-cycle assessment (and not just initial capital costs), thereby placing an emphasis on efficiency over the life of the project.
Our Energy group, part of Kinross’ corporate Operations Strategy unit, facilitates our company-wide energy program.