Energy remains one of the biggest expenses for mines across the globe. The intensive use of fossil fuels to power operations is both costly and has a negative impact on the environment due to high carbon emissions which have resulted in increased pressure on the industry to move towards renewable energy
Resolute Mining Limited, an ASX and LSE listed gold mining company has produced over eight million ounces of gold from 10 gold mines. Committed to delivering a life-of-mine all-in sustaining cost of US$746/oz at its Syama Underground Mine in Mali, they needed to define a lower cost power solution than its existing source of power, which consisted of singular diesel generators. Resolute wanted a solution that offered low-cost power without needing to make a significant upfront capital investment so that the Company could conserve capital for deployment for growth.
Aggreko had been providing and operating a 28 MW diesel power plant on the site that augments the existing diesel power station for a few years and had built both the reputation and credibility to step in and offer support.
Working with Resolute, Aggreko was able to deliver a bespoke cutting edge technical and commercial solution as part of a 16-year Power Supply Agreement (PSA). The two-stage implementation considers the various project factors with a meticulous level of detail to ensure smooth delivery and zero disruption to the mine’s production activity. Stage one is expected to be completed in 2020 and stage two in 2023.
Pricing was structured with a combination of fixed and variable charges depending on the electricity required and evolving MW installed.
US$10 million cost savings in the first full year of operation and reduced environmental impact ensuring long term mine sustainability
The power-as-a-service agreement with this hybrid offering allows Resolute to focus on its core business of mining. They can deliver substantial cost savings, estimated at 2 million euros per month on their current total cost of energy, or a 40 per cent reduction from the current cost of electricity (COE). These savings will flow directly into Resolute’s production cost per ounce and help them operate in any gold price environment, which is crucial for the long-term sustainability of their mining operations.
Once the Solar power plant is integrated into the mine’s energy mix, Resolute will also improve the mine’s environmental impact with a reduction in carbon emissions of approximately 20 per cent.
For more information on Aggreko in mining visit www.aggreko.com
