How to work with petroleum hydrocarbon suppliers to reduce and eliminate contaminated site management and cleanup requirements

DOI: 10.1002/rem.21669
R E S E A R C H A R T I C L E
Howtoworkwithpetroleumhydrocarbonsupplierstoreduce
and eliminate contaminated site management and cleanup
requirements
Turlough Guerin
Climate Alliance Limited, Melbourne, Victoria,
Australia
Correspondence
Turlough Guerin, Climate Alliance Limited,
118 Queen St, Melbourne, VIC 3000,
Australia.
Email: turlough.guerin@climatealliance.org.au
Abstract
Petroleum hydrocarbon suppliers affect a mine's goals for environmental perfor-
mance because of the extensive reach of petroleum hydrocarbon products into the
mining and minerals product life cycle, their impact on operational efficiencies, cost,
and mine viability, and their potential for leaving negative environmental as well as
safety legacies. The supplied petroleum hydrocarbon life cycle is a framework that
enables structured engagement between supplier and customer on a range of en-
vironmental performance issues because it is an example of input into the mining
industry that affects the entire mining and minerals processing value chain. En-
gagement with suppliers in a proactive manner can be a risk management strategy.
Questions for businesses to ask in relation to suppliers and their role in minimizing
business risks and creating new value are offered.
1 | INTRODUCTION
1.1 | General
Globally, sustainable development principles relevant to the mining in-
dustry were adopted by the International Council for Mining and Me-
tallurgy (ICMM) in May 2003. ICMM member companies, which include
the world's largest mining and minerals processing companies, have
pledged to report on their progress in implementing these principles and
these are being adopted internationally. In Australia, the Minerals
Council of Australia (MCA) has developed a framework for sustainable
development for member companies, which is based on these principles.
The MCA's framework, which is called Enduring Value, was released in
October 2004. This framework recognizes the role that suppliers play in
the transition of mining companies to a sustainable future. Since 2015,
the sustainable development goals (SDGs) have been recognized as the
critical drivers for global sustainable development (Endl et al., 2019;
Monteiro et al., 2019; UNDP, 2016). SDG 17, Partnerships for the Goals,
is the most relevant to the supplier–miner relationship.
Stakeholders have traditionally been viewed as integral to the
normal operation of mining companies. There is an extensive and rich
history of the role of stakeholders including suppliers and their
impacts on supply and value chains on the sustainable development
of mines with a focus on developing countries which is where much
of the world's mining activity occurs (Hilson & Basu, 2003; Hilson &
Murck, 2000; Hilson & Nayee, 2002; Hilson et al., 2019).
With the heightening of stakeholder awareness of environ-
mental and social impacts of a mine, the role of suppliers is coming
into sharper focus as an important contributor to both a mine's lia-
bility and opportunity for contributing to sustainable development
(Blowfield, 2000; Enever & Robertson, 1998; Halme et al., 2007).
There is now considerable attention being applied to suppliers in the
mining sector (Gruenhagen & Parker, 2020; Silva et al., 2019;
Valderrama et al., 2020; Zhu et al., 2005).
2 | PURPOSE AND SCOPE
There is an increased focus on governance within a business and
particularly so the fossil fuels sector and the extractive industries.
This paper explores the opportunity provided by suppliers to im-
prove the environmental performance of mining operations, specifi-
cally examining the fuel and lubricant supply side of the mining
business.
Remediation. 2020;1–13. wileyonlinelibrary.com/journal/rem © 2020 Wiley Periodicals LLC | 1

The current study argues that proactive engagement between a
supplier and a customer around the product life cycle of supplied
petroleum hydrocarbons will enable deeper exploration of the op-
portunities for the supplier to offer further (and alternative products
and services) and create value for the customer. The paper provides
a systematic approach to examining how a supplier can create more
value for a mining company compared with the supply of products
alone by introducing a life cycle approach to analyzing a mining
company's value chain associated with energy and lubricant supply.
Within the scope of this paper are environmental and business
performance impacts and improvements due to the nature of pet-
roleum hydrocarbons and not broader social impacts. The paper has
been prepared in the context of delivering fuels and lubricants on a
commercial basis to commercial mining operations in a developed
nation. The working definition of sustainable development in this
paper is specifically framed in the concept of environmental stew-
ardship. It is implementing the industry's commitment to taking di-
rect responsibility for its production, including inputs and processes,
and shared responsibility with customers, suppliers, and end‐users to
ensure that all outputs are produced, consumed, and disposed of in
an environmentally responsible manner.
3 | AN OVERVIEW OF THE SUPPLIED
PETROLEUM HYDROCARBON SUPPLY
CHAIN
The downstream oil industry is a major supplier to the mining and
minerals industry globally. Suppliers in this industry interface with
many parts of the mining and minerals production process.
A useful way of understanding the interconnections between a
supplier and a mining or mineral processing operation (customer) is
through the supplied product and service life cycle across the mine
operation. The life cycle approach enables petroleum hydrocarbons
for example to be tracked from the point of supply through to their
end‐of‐life (Figure 1).
Petroleum hydrocarbons are used through the entire mining and
minerals production process and can generate impacts along the
minerals processing value chain. Typically, the most recognized im-
pacts of petroleum hydrocarbon usage are negative, often associated
with pollution and with significant liabilities to all parties involved in
handling them (Guerin, 2014a, 2015a, 2015c). These are described in
Table 1.
The life cycle approach provides a practical model for mapping
supplier–customer relationships across the range of businesses in
the minerals industry. The following four areas of a mining company's
business (in relation to petroleum hydrocarbons) are affected by, and
need to be considered by, mining operations for effective petroleum
hydrocarbon management. These are also stages of the petroleum
hydrocarbon life cycle, and illustrate where a mining operation will
need to proactively manage hydrocarbons (Figure 1):
• Supply and procurement.
• Storage and internal distribution.
• Product use and servicing.
• End‐of‐life management.
These stages are discussed in order. Selected examples of how
suppliers of petroleum hydrocarbon can interact with mining com-
panies are provided at each of the stages of the life cycle.
FIGURE 1 The life cycle of supplied petroleum hydrocarbons to a mining operation
2 | GUERIN

3.1 | Supply and procurement
During procurement and supply of petroleum hydrocarbons, there is
an opportunity for the supplier to consider supply transaction op-
tions and understand the types of products and/or related services
needed at the mine. There is also the opportunity to review existing
supply arrangements, that will help improve delivery, and reduce
costs, and to provide environmentally preferred products where
these are available. This stage is critical in driving change in the
mining and minerals industry. In the future, there will also be in-
creasing pressure on suppliers as well as lubricant users as to the
types of products used in particular applications, and sources of
TABLE 1 Sources of wastes from maintenance operations in the minerals industrya
Stage of mining process Practice or specific site location Type and source of waste
Exploration Drill maintenance areas Spills and leaks of oils, grease, and degreasers during maintenance to
drilling rigs
Drill mast maintenance areas Grease and oil sand blasted from mast frame before overhaul
maintenance and re‐painting is carried out
Drilling operations Drilling muds with ores containing hydrocarbons
Mine Shovels, excavators, scrapers, backhoes,
wheel loaders, and bucket loaders
Waste oil from oil changes to mine equipment, spillages from breakdown
maintenance, blown hydraulic hoses, spillages from refueling, maintaining
oil and grease levels on‐field equipment; empty drums, and used
protective clothing
Maintenance Wash down areas Wash down of mobile equipment, effluent containing oils, diesel, grease,
detergents, and soil
Heavy vehicle equipment servicing Oil and filter changes on mobile equipment, waste grease containers,
blown hydraulic hoses, used protective clothing, and lead acid batteries;
waste tires; worn brake pads; solvent for engine parts cleaner; plastic
drums; waste coolant, brake, and transmission fluid
Light vehicle servicing Oil and filter changes on mobile equipment, waste grease containers, and
lead acid batteries; tyre bay wastes; general waste around car ramps;
worn brake pads; solvent brake cleaner; solvent for engine parts cleaner;
plastic drums; waste coolant, brake fluid, and transmission fluid
Servicing pits Spills during vehicle servicing, regular greasing and cleaning out of sludge
pits; used protective clothing
Workshop floors Spills onto workshop floor during maintenance and repairs, and leaks and
spills from oil storage areas and from wash down practices
Oily wastewater separators Incorrectly designed or poorly maintained equipment
Oil filter draining Spills around collection vessel
Waste oil storage Spills during storage and transfers
Workshop drain cleaning Sludge (from build‐up)
Compressor sheds Oil changes, leaks, compressor cleaning, water/oil drainage from filters
and air receivers, and wash down of concrete floors
Drum storage areas Leaks/spills from drums, wash down of concrete floors, and drum
cleaning
Fuel supply depots and infrastructure Leaks of diesel and gasoline (on‐ or off‐site), including from underground
supply piping; refueling leaks (overflows and broken seals); surface water
run‐off
Oil supply bays Spills during filling of storage tanks, vehicles, and mobile tankers
Equipment refueling Spills (overfilling) during refueling of equipment and servicing trucks,
leaking pumps, and blown hoses
Upstream (or primary)
processing
Processing plants Oil changes on scrubbers, screens, and conveyor belts; grease
Crusher areas Dust suppression foam; grease and oils
Ore shipment/transport Stackers, reclaimers, conveyors, and train
load‐out areas
Grease and leaked oil, particularly hydraulic fluid
Downstream processing Milling, smelting, refining, and preparation
for sale
Metals and minerals; petroleum hydrocarbons spills, soil and
groundwater contamination in particular from lubricants, cutting fluids,
and hydraulic fluids
a
This is a comprehensive listing of potential sources and types of wastes observed at mining operations during site visits by the author.
GUERIN | 3

energy such as through solar power purchase agreements, storage
batteries, biofuels, and other alternatives to carbon and fossil fuels.
Reconsidering how the mining business model operates should be
considered as part of the supply discussion as electric vehicles in
mines are a reality and challenges the paradigm that fossil fuel
products are only a major source of energy for remote mining op-
erations (Paraszczak et al., 2014). At this stage of the life cycle
suppliers can help mining companies achieve their SDGs through the
following process:
• Product design and development, supporting research and opti-
mization of product selection, and offering product options and
alternatives to conventional products.
• Product procurement transactions and supply chain leverage.
3.1.1 | Product design and development, and
offering product options and alternatives
Petroleum hydrocarbon suppliers invest resources into developing and
producing new products for their customers. This is reflected in the
financial commitments made by large oil companies into product re-
search. Examples of this include the manufacturing and supply of low
emission fuel products. Low sulfur diesel (50 ppm) is now being produced
at refineries in Australia, and benzene reduction units have been installed
at Australian refineries to produce low benzene fuel (1 ppm). These re-
quired maximum concentrations for sulfur and benzene are likely to be
reduced even further as fuel regulations continue to become more
stringent. Biofuels development will be of increasing importance as the
global demand for crude products reduce and prices increase, continues
to increase and the demand for these products increases from larger
users such as mining and other heavy industries. Biofuel formulations
that allow for longer storage life and that do not cause engine power to
be significantly reduced are also needed by the mining industry.
Petroleum hydrocarbon suppliers can provide alternatives to the
conventional range of products currently being offered to the mining
industry. Though cost is critical, customers of lubricants increasingly
want to exercise their ability to choose options when purchasing
products, including options related to environmental performance.
For example, biodegradable lubricants are preferable for applications
where there are acute risks from mining or operations in
environmentally‐sensitive areas such as during exploration and at
ship‐loading facilities (Battersby et al., 2003).
3.1.2 | Product procurement transactions
Petroleum hydrocarbon suppliers can use their purchasing power to
secure supply arrangements with specialized chemical manufacturers or
suppliers. This includes third party supply of specialty products which
can be procured at a lower cost than can be achieved by the end‐user
(mine), such as specialty greases, fluids, coolants, and solvents. The
benefits of this also include reduced administration to the mine, and the
fact that it places responsibility for the security of supply of these
specialty products with the petroleum hydrocarbon supplier.
Suppliers can also assist a mining operation's overall environ-
mental program in the development of environmental management
plans (EMPs) for supplied products, which can be negotiated at the
contract stage of the procurement process. Larger mining operations
in Australia are now stipulating that EMPs be prepared by major fuel
suppliers that are supplying products to their operations. EMPs
should highlight the risks and controls in place in relation to the
supplied product or services (including its transport, storage, and
handling); this increases the assurances that the mining company has
identified and is controlling these risks.
3.2 | Storage and internal distribution
The second stage of the life cycle relates to facility design and layout,
which influences the placement of the supplied product in relation to
the operational needs of the mine. Storage and internal distribution
issues can have a significant impact on the potential or likelihood of
environmental contamination from products such as from leaks,
particularly those undetected, which can result in additional costs to
the mine. These costs can be incurred during the normal life of the
mine or will be realized at mine closure if no action is taken during
normal operations. Strategic capital investment in appropriate sto-
rage and internal distribution facilities ultimately reduces the long‐
term financial liability for a mine, because it can reduce or eliminate
environmental contamination from product losses.
Elements of the product storage and internal distribution stage
of the life cycle, where suppliers can help mining companies achieve
their goals for environmental performance, include the following:
• Ensuring facility design meets construction standards appropriate
for the petroleum hydrocarbon and chemical tanks and infra-
structure present at the mine.
• Optimizing fuel and lubricant delivery across an operation to
ensure the lowest cost and safest way of keeping mobile (i.e.,
portable or transportable) plants running.
• Identifying and assessing compliance of chemical storage areas to
dangerous goods standards (for packaged products).
• Stock reconciliation to account for product flows into and across a
mine or a series of mines.
• Testing of infrastructure (asset) integrity to prevent and minimize
stored product losses.
3.2.1 | Meeting design standards
Fuel and lubricant storage distribution and dispensing facilities must
be designed and built to meet minimum engineering standards. There
are standards that cover issues such as materials, tank and pipe
configurations, electrical, safety, and environmental issues. In Aus-
tralia, one of the main standards is Australia Standard (AS)
4 | GUERIN

1940:2017, which describes the requirements for the storage of
nonflammable liquids such as diesel and lubricants. Petroleum hy-
drocarbon suppliers have expertise in auditing and redesigning, re-
building, and/or repairing such facilities because they are continually
working with fuel and lubricant infrastructure at their own facilities.
They also have extensive experience in applying these standards
because they audit and manage their own facilities. Suppliers are in a
position to offer focused auditing capabilities to their customers, and
to know which fuel and lubricant standards will be applicable to the
mine. There is a range of other industry standards such as those for
handling flammable goods and for construction of fuel and lubricant
storage and dispensing facilities.
3.2.2 | Optimizing product delivery
As a mine expands, and the location of the mined ore body changes
relative to the mine's fixed infrastructure, so does the mining op-
eration's need for the supply and dispensing of fuels and lubricants.
For a mine to optimize the delivery of fuels and lubricants in the
mine, it requires extensive knowledge of transport and distribution
logistics. This will ensure that capital is not wasted on infrastructure
that could become redundant as a result of inappropriate placement
of fuel or lubricant delivery infrastructure. Minimizing the amount of
time required for refueling and maintenance ensures loss of pro-
ductivity is kept as low as possible.
3.2.3 | Stock reconciliation solutions
Fuel and lubricant stock reconciliation systems include simple me-
chanical measurement (i.e., dipping) of tanks, reconciliation of flow
meters on a regular basis across a single mine, and more complex
network‐level (i.e., across multiple sites) leak detection systems that
have data collection, statistical analyses, and red‐flag reporting me-
chanisms. Reporting from stock reconciliation systems identifies
where stock control practices are inadequate, and identifies tanks, or
users of mobile and fixed mechanical plant (i.e., machinery), that have
or contribute to unusually high product losses. Such systems are
particularly important for underground product storage facilities and
pipeline distribution systems. Inventory control and monitoring
systems are a relatively small investment that can reduce environ-
mental testing and remediation costs in the long term and are the
only effective and preventative mechanisms for monitoring leaking
underground storage systems. Stock reconciliation systems can also
enable better control of fuel management data for more effective
reporting and reconciliation of greenhouse gas emissions.
3.2.4 | Asset integrity testing
Asset integrity testing is the assessment of petroleum storage, dis-
tribution, and dispensing equipment, and other facilities for product
leaks. Mining operations and other facilities that handle fuel and
lubricants are required to conduct integrity testing on their assets at
specified time intervals. Ten‐year test intervals are common in many
jurisdictions. Asset testing can include positive and negative pressure
testing systems, which can measure the loss of pressure or vacuum in
the product storage or distribution system over time to determine
the presence and extent of leaks. Asset integrity testing should form
the first stage of assessing the risks associated with the storage and
dispensing of fuel at a mine site. It is not uncommon that asset
integrity testing reveals that a proportion of underground storage
structures (pipes and tanks) are leaking at a facility. The presence of
failure from asset integrity testing, when using the common vacuum
testing approach, indicates that there is air ingress and/or a crack or
hole in the infrastructure. Where an asset failure has occurred, the
concrete or surface overlying the underground asset will have to be
removed to examine and identify the reason for failure or if the test
result is a false positive. Apparent asset failures (i.e., reporting false
positives during the vacuum test) may simply be a loose collar on a
pipe or loose pipe fittings, and not necessarily a hole in a tank or pipe.
3.3 | Product use and servicing
Petroleum hydrocarbon products can and should be managed during
their working life to ensure that they do what they are supposed to
do during this time. The third stage of the life cycle examines the
impacts of the supplied petroleum hydrocarbon product(s) on fixed
and mobile mine plant components and how these products can be
best serviced to extend their own as well as the plant's life. Fluids
selection across a mine's fixed and mobile plant can include con-
solidating the range of grades of lubricants being used. Consolidation
itself can reduce the range of products and containers stored (and
ultimately disposed of) at a mine site, which can enhance waste
management. But more importantly, fluid selection can have a dra-
matic impact on the eco‐efficiency of mining equipment. Suppliers
can work with mining companies in the product use and servicing
stage to achieve the mine's goals for environmental performance, or
often referred to as product life extension, in the following ways:
• Reviewing the mine's maintenance strategy to enhance the re-
liability of mobile and fixed mine plant operations.
• Recommending the use of energy‐efficient lubricants for high‐
friction applications.
• Managing lubricant cleanliness to maximize lubricant and plant life.
• Developing lubricant laundering (i.e., cleaning) as an option to
extend the useful life of lubricants.
3.3.1 | Reviewing the mine's maintenance strategy
to enhance reliability of mobile and fixed mine plant
Further examples from this stage of the life cycle are the contribu-
tions suppliers can make to maintenance strategies. These should
GUERIN | 5

include planning for maintenance activities, monitoring and analyzing
maintenance costs, establishing targets for maintenance perfor-
mance (in particular percentage downtime), and establishing pre-
ventative maintenance programs. Preventative maintenance is an
area where considerable cost savings may exist for a mine, particu-
larly because the numbers and sizes of fixed and mobile plants can be
large. An important part of any preventative maintenance program is
to have predictive tools to define equipment defects as early as
possible. Early detection of a defect allows for better failure analysis
to improve the equipment's service life performance. It also assists in
identifying the true problem rather than a symptom of the problem.
In many cases, what we see as the failed component is a symptom of
what the true cause of the failure was. To determine the causes of
failure, fuel and lubricant suppliers can provide preventative main-
tenance services as a means of extending both product and plant life
at customer sites using thermographic techniques and condition
monitoring programs that involve lubricant analysis and diagnosis.
Such programs help prevent plant breakdowns, while at the same
time delivering business and environmental benefits through lower
operating and capital costs, and reducing rates of waste oil genera-
tion (Garvey, 2006; Mercer, 2005; Pearson, 2004; West, 2006). For
example, infrared thermography, a technique that allows main-
tenance operators to see variations in temperature across plant and
equipment, has been found to be a valuable tool in the mining in-
dustry. It can survey equipment at a mine, including electrical dis-
tribution systems, pumping systems, piping systems, exchangers,
process fired heaters, and many other types of equipment. Infrared
thermography can assist in finding the underlying cause of failure. It
is seen as a predictive tool that supports other predictive technol-
ogies, such as vibration analysis and compression analysis. One pri-
mary advantage is that it is faster than many of the existing
techniques in identifying and detecting a problem. It has the ability to
find defects before a secondary catastrophic failure occurs. A tech-
nician can view many pieces of mechanical equipment very quickly to
determine if a possible problem exists. Various petroleum hydro-
carbon suppliers are providing preventative maintenance strategies,
that often package the solutions together for clients (Messenger
et al., 2004a).
3.3.2 | Recommending the use of energy‐efficient
lubricants for high‐friction applications
Energy‐efficient lubricants have a niche role in enhancing plant
performance. By switching to synthetic lubricants, the most common
examples of energy‐efficient lubricants, a mine can improve both the
efficiency of plant energy use and environmental performance. For
example, synthetic lubricants have long been recognized for their
benefits compared with conventional mineral oil‐based lubricants for
increasing oil service life, reducing wear, system deposits, and im-
proved viscosity/temperature behavior. They are not used widely
and this is primarily because of their cost (Guerin et al., 2004).
3.3.3 | Managing lubricant cleanliness to maximize
lubricant and plant life
Another example of product use and servicing is managing lubricant
contamination. The impact on heavy vehicles from contaminated
lubricants can be extremely costly due to lost productivity, increased
maintenance, and spare parts replacement costs. There are many
risks associated with lubricant contamination, especially where dirt,
road grime, and dust are abundant. As far as particulate matter is
concerned, how much is considered too much, and how will this
contaminant impact on a machine's life? The impact of lubricant
contamination will depend on the hardness, volume, and size of the
contaminating material. Harder materials such as silica, bauxite, and
iron ore will cause accelerated abrasive wear, whereas softer ma-
terials such as talc and coal can cause build‐up in oil ways and tooth
roots that can lead to failure (Messenger et al., 2004a; Carlin et al.,
2003). Any size and number of particles in a lubricant can cause
problems; however, larger particles tend to fall to the base of the
plant's fluid reservoir. The smaller particles remain suspended and
are pumped into bearings and other critical working components. To
prevent this problem, rather than relying entirely on oil filters, it is
critical that plant and product container breathers are kept clean.
The most common lubricant and fluids (including brake, hy-
draulic, and steering fluids) contamination sources and causes
include:
• The mechanical seal on metal drums working loose during ab-
normal transportation conditions, releasing metal particulates,
and causing drum varnish to flake into the oil.
• Bulky plastic product containers having breathers that allow the
product to breathe, but that leave it exposed to atmospheric
contamination.
• Bulk lubricant transport systems, which are used to administer
lubricant products to equipment in the field and can contain re-
sidue from previous loads and/or dust particles.
• On‐site practices designed to make life “easier” for on‐site per-
sonnel who handle lubricants. For example, such as leaving a
grease hopper lid open so that truck drivers can monitor grease
levels also leaves the product open to the elements and increases
the risk of product contamination from dust.
Several studies have dealt with this issue in greater detail (Huth,
1975; Messenger et al., 2003; Pavlat, 1984; Rakic, 2004) and are not
discussed further.
3.3.4 | Developing lubricant laundering as an
option to extend the useful life of lubricants
A final example is a technology called lubricant laundering, which brings
the benefit of reduced costs in the purchase of new lubricants
(Messenger et al., 2004b). Lubricant laundering is the refurbishing or
6 | GUERIN

cleaning of a lubricant so it can be re‐used. This process can also result in
fewer oil changes which mean less used oil to manage. Applications of
this technology can be limited because of the relatively high capital cost
for the equipment, and the labor required to handle and manage the
laundering operation. Lubricant laundering offers the potential for a mine
to reduce its lubricant purchase costs; however, it should be viewed as
only one of a number of strategies to help extend the life of the supplied
petroleum hydrocarbon at a mine (Neadle, 1994).
3.4 | End‐of‐life management
The final stage of the petroleum hydrocarbon life cycle is managing
the supplied product at the end of its useful life. Although various
technologies and strategies can extend the life of the supplied pro-
ducts, lubricants eventually become ineffective and need to be
managed as either wastes or a feedstock for energy recovery. Sup-
pliers can help mining companies achieve their goals for environ-
mental performance during the end‐of‐life management stage of the
life cycle, including the following:
• Product packaging and stewardship.
• Used oil collection and management.
• Management of maintenance wastes.
• Fuel and lubricant infrastructure management.
• Fuel and lubricant disaster and spill management.
3.4.1 | Product packaging and stewardship
Providing an outlet for off‐site removal of used oil and oil containers is an
ongoing challenge for both mining operations and packed product fluid
suppliers. Consolidation of supplied pack sizes into a single size, for ex-
ample, 18 L (where a packed product is required at a mine) and switching
to bulk lubricants (where possible), are ways in which suppliers can assist
a mining operation. The results demonstrated that the plastics recycling
industry in many countries, while technically able to reprocess the vo-
lume of containers produced as a result of the mining industry's con-
sumption, is at the stage of maturity such that the costs for reprocessing
of used oil container plastic is too high to provide a cost effective and an
equitable take‐back service for all mining and/or industry customers. For
example, in Australia, the introduction of a National Packaging Covenant
may help provide an incentive for the lubricant and specialty chemical
supply industry to provide the most environmentally preferred and cost‐
effective packaging solutions for their industry to supply the mining
industry.
3.4.2 | Used oil collection and management
The used oil management industry benefits greatly from the mining
industry because of the large used oil volumes generated by mining
and mineral processing. For example, the volume of used oil collected
in Australia is approximately 500 ml annually. Of this volume, ap-
proximately 50 ml is generated by the mining industry. Used oil
handlers provide a network of collection services reaching most lo-
cations in Australia, including remote mining areas. These suppliers
often work with each other; as subcontractors to other used oil
handlers, depending on the region. There are, however, a wide range
of quality standards to which these suppliers work to, and this has
meant there are varying levels of service quality provided to the
mining industry. There are no specific legislated standards to which
these suppliers have to work, with the exception of AS 1940:2017;
this standard regulates the storage and handling of dangerous goods
and has been enforced in many Australia jurisdictions by state gov-
ernments. Some facilities are certified to ISO 14001, but many of the
facilities have poor housekeeping practises. Overall, these facilities
are improving due to the increased levels of competition, largely due
to the Australian federal government's initiative to implement leg-
islation that maximizes the value of the used oil resource. Used oils
are reprocessed back into base oils at various reprocessing facilities
across Australia, including most capital cities.
3.4.3 | Management of maintenance wastes
A further example is a management of maintenance and related
wastes and their impacts (Table 2). Such waste, which includes
used petroleum hydrocarbons, poses a significant challenge to
the mining industry (Guerin, 2002). If maintenance activities are
not conducted effectively so as to minimize losses of petroleum
hydrocarbon wastes to the environment, they can lead to sig-
nificant long‐term environmental liabilities from soil and
groundwater contamination. Typically, many older mining op-
erations (i.e., those established for > 20 years) do not manage
their maintenance wastes effectively, based on a survey pre-
viously published by the author (Guerin, 2002). Good house-
keeping in maintenance areas is critical to prevent soil and
groundwater contamination; such housekeeping includes for ex-
ample proper waste segregation and storage of drums and
wastes.
Petroleum hydrocarbon suppliers often have the capability or
the supply chain influence to provide wide‐ranging services that
improve the management of maintenance activities at a mine. Pet-
roleum hydrocarbon suppliers can assist by:
• Auditing maintenance waste streams.
• Advising on process improvements to reduce volumes and types
of maintenance wastes.
• Advising on life cycle management of maintenance wastes from
prevention through to treatment.
These areas have been dealt with extensively elsewhere and are
not discussed further in this paper (Guerin, 2002).
GUERIN | 7

3.4.4 | Fuel and lubricant infrastructure
management
A further example of end‐of‐life management of petroleum hydro-
carbons is managing aging fuel and lubricant infrastructure and as-
sets. This stage of the life cycle poses the single biggest financial risk
to mining companies from petroleum hydrocarbons. Therefore, the
procurement of cost effective and technically proficient environ-
mental consultants and civil contractors to adequately delineate and
remediate contaminated soil and groundwater is critical. Further-
more, to minimize the amount of remediation needed, asset integrity
testing should also be carried out. Petroleum hydrocarbon suppliers
in Australia and the wider Asia Pacific (Oceania) region have devel-
oped testing specifications that consultants and contractors are re-
quired to use for soil and groundwater assessment and remediation.
Such an approach specifies the expected outcome or objective of
each phase of the assessment for the mining operation, enables
standardized consultant and contractor performance, produces
consistent results across operations and countries, and minimizes
wasted efforts in ineffective environmental assessments. Petroleum
hydrocarbon suppliers, specifically their environmental and re-
mediation teams, therefore have expertise that may help mining
companies ensure that any work performed by external parties to
delineate contamination for improved environmental management
and closure planning is effective, and properly estimated and exe-
cuted. These resources can be drawn upon by the mine procurement
staff as part of the fuel and lubricant supply agreements.
3.4.5 | Fuel and lubricant spill management
Fuel and lubricant suppliers usually have specialized expertise and
dedicated resources for the management of petroleum hydrocarbon
spills. Mining operations can harness this expertise by having their
TABLE 2 Environmental impacts as a consequence of equipment maintenance and supplied petroleum hydrocarbons to the mining industry
Aspect of maintenance programa
Description of impact or potential impactb
Liquid petroleum hydrocarbonsc
Groundwater contamination from spills and leaksd
Soil and surface water contamination from spills and leaksd
Air pollution (from uncontained volatile components if present)
Disposal without re‐use or energy recovery is unsustainable
Solvents Air pollution – uncontained vapors could adversely affect human health
Groundwater contamination from spills and leaksd
Waste grease Surface soil contamination from spills and leaksd
Soil and groundwater contamination from petroleum hydrocarbons and metals
impregnated in greased
Detergents Toxicity to numerous aquatic organisms; emulsification of petroleum hydrocarbons
(and reduced waste oil recovery)
Sediment (suspended solids) Surface water contamination from spills and leaksd
; blockages cause flow‐on effects in
oily wastewater management systems
Contaminated rags, paper, protective equipment, and
gasketse
Excessive use and waste is unsustainable
Used oil filters, burst hydraulic hoses, empty fuel, oil and
grease containers (e.g., drums)
Often landfilled which is unsustainable. Petroleum hydrocarbons within these materials
have the potential to impact soil and groundwater (i.e., act as contamination sources)
Energy usage (powered equipment) High levels of use can be unsustainable if not linked into an energy generation system
on‐site
Water usage (for washing vehicles before maintenance) High levels of use are unsustainable (may reduce quantity and quality of water supplies
for other uses, e.g., availability for local communities near mine)
a
Including contaminants, co‐contaminants, or waste types.
b
Note that these are qualified as “potential” impacts because these wastes will not always have a negative impact on the environment (i.e., if they are
managed and disposed of properly).
c
These include fuels and engine, hydraulic, gearbox, differential, and steering oils, off‐specification fuels and oils, cutting fluids, and oily wastewater.
d
Soil and groundwater contamination can add significantly to the environmental liability of a mining operation, and site investigations, risk assessments,
and remediation programs may be required to address these at closure or as part of the divestment of the operation.
e
Also include oil‐contaminated plastics, speciality chemicals, leather, and cloth (e.g., gloves).
8 | GUERIN

suppliers review on‐site spill or disaster management plans, pur-
chasing spill kits or related products, and engaging them for co-
ordinated disaster management training. These services can be
included in supply agreements or procured out of the scope of the
supply agreement. Suppliers can also assist audits, develop schedules
for testing disaster management programs, and identify resources
that are needed to ensure effective planning. Harnessing the
knowledge and capabilities of product suppliers in these areas could
include understanding the root causes of spills which often reflect
underlying problems with equipment and its use, as well as being a
source of environmental noncompliance. Examples of such root
causes in the context of hydrocarbon spills is presented elsewhere
(Guerin, 2014b, 2015b).
4 | DISCUSSION
4.1 | General
The paper highlights opportunities where petroleum hydrocarbon
suppliers can work with mining companies to help them transition
towards improved environmental performance and, ultimately, im-
plement a sustainable development agenda, including the provision
of specific products and services that add new value to the mining
operation (customer).
There are technical barriers to implementing supplier‐driven
environmental improvements in the mining supply chain. However,
the most difficult barriers are those relating to changing culture in
both the supplier and mining customer businesses. Mining companies
need to appreciate and value suppliers, products, and/or services
that will or can contribute materially to the achievement of their
goals for long‐term, sustainable operation of their mines. Such an
appreciation is reflected in collaboration between suppliers and
contractors that includes the engagement planning sessions de-
scribed previously in the case study. While collaboration can be
considered the driving force behind effective supply chain manage-
ment, there is still limited evidence that companies have truly capi-
talized on its potential. This is a challenge for the mining industry,
which in this regard is considerably behind other industries such as
the food, automotive and electronics industries.
There are other barriers that will limit the implementation of
examples described in the preceding sections of this paper. The lack
of an understanding by suppliers that their long term commitment to
a mining operation is critical. Such commitment will require ongoing
relationship management and a two‐way commitment to improve the
value provided back to the supplier and through to the mining op-
eration. The challenge is for the supplier to remain engaged and not
lose margin. Also, the perceived benefits of stakeholder engagement
along the supplied product life cycle can be intangible, with only
limited direct evidence of impact on financial performance. The
challenge for suppliers is to demonstrate the financial value in all the
offerings provided to the mining company, in addition to the benefits
that help the mining company become more sustainable.
Corporate and or mine procurement groups and other critical
decision makers within mining companies may not recognize their
role in implementing the environmental and SDGs of their company
in a commercial context. Procurement staff require training and
awareness of these issues. Key performance indicators need to be
set by senior mine management to emphasize the importance of
environmental or sustainable development concerns or values in
purchasing decisions.
It is this last point that presents a challenge to the conventional
negotiation process and is currently the major hurdle to mining
companies obtaining potential value from petroleum hydrocarbon
suppliers. It is also this point where there are considerable oppor-
tunities for improvement. Much work is yet to be done to educate
supply and procurement staff to the business value of close, proac-
tive engagement with suppliers. Both suppliers and mine staff need
to take time to broaden the relationship between their organizations
so that opportunities to improve the environmental performance of
the supply chain can be explored more comprehensively for their
particular mining operation.
Integrating life cycle considerations into the purchasing process
at a mine requires a commercial decision by the supplier to provide
the necessary resources and linkages with its mining customer to
ensure the value of both products and services is delivered. This
should involve the sharing of information between environmental
managers or their equivalent between each organization. A proactive
approach to engagement between supplier and customers in relation
to fuel and lubricant supply will likely allow the mining sector to
transition to more sustainable ways of handling petroleum hydro-
carbons but enable more strategic conversations about the broader
use of fossil fuels in the mining sector. Examples of options for
transitioning the sector are described in Figure 2.
4.2 | Questions for procurement and governance
professionals
Through a risk management lens, suppliers can be seen as valuable
resources for a mining operation and an opportunity to better align
the business model to external forces and to innovate. Combined
with sustainable development objectives, including meeting the
growing social licence expectations of mining companies and their
suppliers, the risk management lens can provide a compelling reason
for businesses to acknowledge the critical transitional role that
suppliers can play in supporting mining customers to move towards
more environmentally friendly and sustainable business outcomes.
This includes decoupling mine growth from a reliance on petroleum
hydrocarbons.
The following questions have been provided for executives and
board members to be asking of its mining business particularly as it
approaches strategic conversations with suppliers:
• What transitions will be required to reduce our reliance on liquid
petroleum hydrocarbon fuels?
GUERIN | 9

• Do we have a pathway to net‐zero emissions? Do our contracts
reflect this strategy?
• Are we as an organization creating a culture that enables effective
supplier engagement? If not, how is our current culture limiting
opportunities to create value with our major suppliers?
• To what extent can we move risk towards the suppliers (of pet-
roleum hydrocarbon products)?
• How can our operations be decoupled from reliance on un-
sustainable inputs?
• What risks are we creating as a mining operation by entering into
contracts with petroleum hydrocarbon suppliers?
• Are we engaging with our suppliers to extract value or are we
using standard contracts? If so how? If not, why are we not driving
innovation in our contracts?
FIGURE 2 Transitioning options for different stages of the petroleum hydrocarbon life cycle
10 | GUERIN

TABLE 3 Examples of proactive supplier engagement in relation to diesel supply risk and cost mitigation
Case study Product
Innovation and
transition Description of initiative
The DeGrussa mine, owned by
Sandfire Resources NL
(Australia)a
Diesel Solar PPA integrated
into mine's onsite
power supply
The mine will purchase the power under a 5.5‐year power
purchase agreement (PPA). The solar PV plant is integrated into
the existing 19 MW diesel generator facility, which is owned by
independent power producer, Kalgoorlie Power Systems. Single
axis tracking and lithium ion battery storage allow more
renewables to be used offsets approximately 5 million liters of
diesel fuel per annum
Fortescue Metals Group solar
gas hybrid renewables
project, Pilbara, Western
Australiab
Diesel Solar gas hybrid
project to reduce
diesel usage
The project to supply up to 100% of the daytime energy
required at its Christmas Creek and Cloudbreak mines at the
Chichester Hub iron ore operation in the Pilbara
Alinta Energy has agreed with Fortescue for the construction of
a 60 MW solar PV generation facility. Alinta will also build by
mid‐2021 a 60‐km transmission line to link the mines to Alinta's
existing 145 MW Newman gas‐fired power station and its
35 MW battery storage system. The project will offset 100
million liters of diesel per annum
Resolute Mining, Syama in
Malic
Diesel Solar, battery,
thermal to augment
diesel use
The power plant will combine solar, battery, and thermal
generation technologies in one power solution, replacing
Syama's current 28 MW diesel‐generated power station.
Current cost to generate power at Syama ranges from US$0.20/
kWh to US$0.24/kWh depending on prevailing diesel fuel prices.
Resolute expects it to reduce Syama's power costs by
approximately 40% (relative to its current power supply) and
carbon emissions by around 20%. The new hybrid plant will
comprise the installation of three new thermal energy modular
block generators, which are fueled using a refined heavy fuel oil
and will provide 30 MW of power, and a 10 MW Y‐cube battery
storage system
General miningd
Diesel Scheduling, blasting
and machine
movements
Most mines have long‐, medium‐, and short‐term planning and
scheduling in place which determine planned materials
movement. However, fluctuating mineral prices and demand
often force operations to adopt selective mining. This usually
disrupts the planned mine schedule, resulting in unnecessary
machine movements within the pit. There are also occasions
when the dragline has to travel several kilometers to remove
interburden after the completion of coal excavation. These
machine movements can be avoided by adopting methods where
several layers can be blasted as one blast event. This avoids
unnecessary machine movement and results in productivity
gains, cost savings and reductions in energy consumption and,
thus, greenhouse gas emissions
General mininge
Diesel Improving machine
productivity
Improving the “diggability” of ore would further add to these
productivity gains (in addition to those added above). In this
regard, the blast design can be modified to produce muckpiles of
varying degrees of swell or tightness. Combining multiple bench
operations into fewer benches and reducing the number of drill,
blast, and load cycles can also increase overall equipment
productivity and reduce machine movement time. Optimizing
haul distances by bringing the waste dump closer to the
excavating machinery; designing for dual‐side shovel loading;
using appropriate buckets; and optimizing the dump height for
the dragline based on boom height, reach, and swing angle are
other areas that can be modified to increase productivity and
achieve savings in energy consumption and emissions.
Commercial platform to modify
driver behavior changef
Diesel Improve operator
behavior through
Operator behavior accounted for 7% variance in overall fuel
consumption in mining vehicles across a large mine. Across the
operator roster, the average opportunity for improvement was
(Continues)
GUERIN | 11

If a mining operation is to progress to procuring and using clean
energy sources and to set and work toward net‐zero emissions
mining, its board and executive must be engaged in setting this di-
rection. Often what is required, based on previous studies where
sustainability professionals often struggle with change management,
is using examples of what is possible (Guerin, 2018). Table 3 provides
examples of where specific mining operations have introduced
strategies to mitigate against being overly reliant on liquid petroleum
hydrocarbons. In particular, these case studies describe the deploy-
ment of solar power in combination with other technologies to
augment or replace petroleum.
5 | CONCLUSIONS
Suppliers can enhance the environmental performance of mining
practises by helping operations become more efficient in their use of
supplied products and input resources; this leads to improved business
as well as environmental performance. In particular, petroleum hydro-
carbon suppliers can help enable mining company performance to re-
duce fuel and lubricant use and therefore costs, to optimize the value
gained from the supplied products, to extend the life of products, and to
ensure used products are recycled or reprocessed efficiently. Suppliers
have specialized knowledge, and there are numerous examples of how
they can assist mining customers throughout the life of the supplied
petroleum hydrocarbons. In summary, a relatively small investment in
time and resources to engage with suppliers through engagement and
planning sessions can provide a useful platform for identifying, dis-
cussing, and developing joint actions to address issues that directly
affect a mining operation's objectives for sustainable development and
corporate responsibility. Such an investment is a strategic approach to
risk management for a mining company, which also delivers improved
environmental performance.
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AUTHOR BIOGRAPHY
Turlough Guerin PhD, is a nonexecutive director on several
boards including Bioregional Australia Foundation, a
champion of the global One Planet Living framework and is
Chair, Board of Advisors of Climate Alliance Limited in
Australia. He is an advocate for sustainable business and
strong and effective climate governance. He has worked for
Rio Tinto, Shell, First Solar, and other large corporations in
Australia.
How to cite this article: Guerin T. How to work with
petroleum hydrocarbon suppliers to reduce and eliminate
contaminated site management and cleanup requirements.
Remediation. 2020;1–13. https://doi.org/10.1002/rem.21669
GUERIN | 13

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