LAKE SHORE GOLD CORP. Building an Energy Management Culture
Tahoe Resources Inc. Tahoe Resources Inc. is a publicly traded company led by experienced mining professionals who are dedicated to the responsible production of precious metals in the Americas. In our quest to develop and operate worldclass mines, we are dedicated to maximizing shareholder value while working to the highest standards of environmental stewardship, community engagement and employee health and safety As a new leader in precious metals, we operate the Escobal silver mine in Guatemala, the La Arena and Shahuindo gold mines in Peru and the Timmins West and Bell Creek gold mines in Canada. 2
Tahoe Canada Timmins West Mine Timmins West Complex is located 18km West of Timmins, Ontario near junction of highways 101 and 144 Two Main Deposits: Timmins Deposit and Thunder Creek Deposit. Deposits are 800m apart, connected via two drifts underground Mine Production 2,700 tonnes per day ore 700 to 1,000 tonnes per day waste Ore from Mine is trucked approx. 42kms to Bell Creek Mill for processing 24/7 and 365 days per year. 3
Tahoe Canada Bell Creek Mine Bell Creek Mine is an underground mine located 20 kms northeast of Timmins Lake Shore Gold acquired Bell Creek Mine and Mill in December 2007 from Porcupine Joint Venture (Goldcorp and Kinross) Mine is currently in midst of a $80M shaft expansion 4
Tahoe Canada Bell Creek Mill Bell Creek Mill processes ore from the Timmins West and Bell Creek Mines Conventional gold mill circuit. Processes for gold recovery: Grinding, Gravity and Leaching Carbon in Leach (CIL) Carbon in Pulp (CIP) Consistently achieve recoveries of over 95% 5
Foundation of Energy Program Commitment Upper Management Commitment (Corporate Energy Policy) Dedicated Full-time Energy Manager Cross Functional Energy Team Energy Champion for Each Process Ownership and Accountability Energy Management Plan Action Plan well thought out Align with Corporate Objectives Milestones/Deliverables KPI Tracking and Reporting Communication Site Awareness Program Training/Workshops Energy Incentive Program Execution Energy Opportunities Best Practices/Technologies Leverage available funding Continuous skills development 6
Senior Management Support Why it s required Individuals can only accomplish so much. Team work will get you further. Managers can provide the resources required to ensure success People EM will not be experts in every area; need to assemble experts on team Funds Most companies do not have energy budgets or they are overlooked at the onset of the program. Managers will be allowing EM to use their already strained budgets. How do you get it Outline your objectives/goals. Short, Medium and Long-term Show your vision building an energy culture Be confident and enthusiastic believe in your own material Proof is in the pudding Cost - show them numbers! Energy is Top 5 Benefits Decrease costs or increase production Speak their language All in Sustainable Costs (AISC) $/Tonne or $/oz. Quick wins use these to get program off the ground Turn off lights Reduce fan speeds Transparency tell Managers about resources time commitment 7
Roles and Functionality Energy Management Team Communicate the Corporate Energy Policy Create a sense of purpose Set clear expectations Provide direction Provide Necessary Resources Engage management team/supervisors Communicate Success Recognition & Rewards Energy Working Group Attend energy meetings Advance energy projects Opportunity identifications Idea and knowledge sharing Skills development Workforce engagement M & V for projects Quantify costs and savings Manage projects and initiatives Energy Manager Energy Management Plan Owner Reporting requirements/external Funding Initiatives Own Opportunity/Energy Project Register Develop Reporting Metrics Develop Energy Culture Promote and Implement Energy Management Initiatives Assist Team Communications Energy Tracking (Baseline, Dashboards, etc.) Rewards & Awareness Keep Executive Management engaged 8
Inspire Symbol/Slogan Symbolism is very powerful Allows everyone to immediately know improvement is taking place Energy Rewards Program Compensate workforce for submitting suggestions for energy conservation Monthly draws/annual awards Eligible to all employees, students, contractors. No senior managers Departmental Challenges All suggestions receive written response SWAG - hats, t-shirts, etc. 9
Visibility Internal Be Visible Get out and meet the workforce, on the job in their environment Attend morning huddles, safety meetings, etc. Communication Daily, Weekly or Monthly Updates on EMP Progress (TV, Bulletins, etc.) Highlight Accomplishments External Celebrate successes Thank workforce for projects and ideas & management for commitment to program Praise your team s effort Be involved in the Energy Management Community EM HUB IESO Training/Webinars 10
Final Thoughts Energy Blueprint Well thought out plan Set milestones. Short, Medium and Long-term Persistence Don t give up Keep a positive outlook Patience Speak a common language Relate energy savings to industry metrics Not saving MWh, savings $/tonne Leverage Government Programs & Funding Northern Industrial Electricity Rate Program (Mining) Industrial Accelerator Program 11
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