Securing a reliable and steady energy supply is an important concern for nations the world over. But for international mining companies like Anglo American, looking beyond the territorial boundaries of their headquarters and assessing energy security in lands far afield is critical if their business is to stay afloat and competitive.
With increased operations in South Africa than anywhere else in the world, Anglo American has already suffered at the hands of enforced power black-outs during 2008 and the company is now determined to take a more proactive approach in controlling its power sources.
Power cuts caused faults in Anglo American's distribution system in South Africa last year as they lost work and money because of our power-generating capacity. Hoe-Richardson, head of energy strategy, focuses on securing the firm's access to electricity wherever its projects are located. Electricity accounts for three quarters of power consumption but because it is not easy to store and its movement is often restricted to national grid systems. When shortages do occur they can often be hard to fix.
Anglo American is now looking at building wind farms in countries such as Namibia and Chile where it has a growing presence, or forming joint ventures which may take the form of buying the land and then contracting out the power-generation work to a local firm.