Gina Rinehart’s Mine Achieves 93% Renewable Energy in 2023
The Mt Weld rare earths mine, a major asset backed by Australia’s wealthiest individual, Gina Rinehart, is exceeding its projected renewable energy use, operating at an impressive average of 93 per cent renewables since the beginning of the year.
Owned by Lynas Rare Earths, and with significant investment from Rinehart, the mine had anticipated an average of 70 per cent renewable energy usage following the commissioning of its new hybrid power plant by Zenith Energy in late 2022. However, it has far surpassed this expectation. The recently released annual report from Lynas reveals that from January to June, the mine and its processing facilities operated at a remarkable 93 per cent renewable share, significantly exceeding initial targets.
Details of the Hybrid Power Plant
The hybrid power plant at Mt Weld integrates various renewable sources, including 24 megawatts (MW) of wind energy generated by four turbines, a 7 MW solar installation, and a 12 MW battery system paired with a 17 MW diesel backup. Lynas noted that this system alone saved more than 870,000 litres of diesel in the third quarter when compared to the same period the previous year, when the plant operated solely on diesel power. These savings have led to reduced operational costs, improved energy efficiency, and lower emissions.
Future of Rare Earths and Market Challenges
Lynas has identified electric vehicles, industrial electrification, and wind turbines as the primary future markets for its rare earths. However, the company also raised concerns about the potential risks associated with a slowdown in the transition to clean energy. In its annual report, Lynas stated, “Strong demand is likely to be observed under transition scenarios consistent with more ambitious emissions reduction policies.” Despite this, Rinehart, whose investment in Lynas is estimated at around $1.7 billion, and her political allies, including One Nation, are calling for a reevaluation of net zero targets.
The performance of the hybrid power plant is particularly noteworthy given Rinehart’s position as a vocal opponent of renewable energy in Australia. Critics often argue that renewables cannot sustain modern economies, yet the Mt Weld mine demonstrates remarkable success with a high percentage of renewable energy integration.
Market Operator Concerns and Technological Solutions
The primary concern for market operators revolves around the provision of essential market services, such as maintaining grid stability during fluctuating energy generation. Although Inverter manufacturers assert that their advanced grid-forming inverters can deliver stability, there remains a preference among operators for traditional energy sources until the technology is validated on a larger scale.
In terms of renewable performance, Mt Weld’s closest competitors include the Bellevue gold mine, which has achieved between 80 and 90 per cent renewable energy usage, recording 153 continuous hours with “engines off.” Additionally, Lionheart Resources’ Kathleen Valley mine has maintained an average of approximately 82 per cent renewables this year.
Insights from Zenith Energy
Zenith Energy, the company responsible for building and operating these hybrid power projects, claims its remote hybrid systems are delivering levels of renewable integration that surpass many larger grid-connected industrial operations while ensuring reliable energy supply in challenging environments. CEO Matthew Moffat highlighted this success, indicating that such high levels of renewable energy service industrial operations effectively debunk the myth that they cannot function in demanding conditions.
Moffat added, “The national energy debate often centres on future targets and long-term pathways, but these operations showcase that high-renewable energy systems are already viable at a commercial scale.” He emphasised that with no margin for error or disruption in these mining operations, the capabilities demonstrated by the Mt Weld facility could reshape the conversation about the potential for high-renewable systems across the broader economy.
