LONDON: Resolute Mining Limited has signed a Power Supply Agreement (PSA) with globally leading power generation provider, Aggreko plc for the development of the new solar hybrid modular power station at the Company’s Syama Gold Mine in Mali.
Execution of the PSA follows the signing of a Heads of Terms with Aggreko in November for the development of the new power solution for Syama.
The signing of the PSA confirms that a new Syama solar hybrid modular power station will combine battery, thermal and solar generation technologies into one integrated power dispatchable solution ensuring instant power, improved power quality, spinning reserve replacement resulting in fuel savings, optimised plant operation, maintenance efficiencies and reduced emissions.
The terms of the PSA provide that Resolute will pay a levelised cost of energy tariff of US$0.15 per kilowatt hour (kWh) based on current heavy fuel oil prices. This cost compares favourably with the current energy cost at Syama which ranges from US$0.23/kWh to US$0.26/kWh based on prevailing diesel prices.
The power costs provided within the PSA are consistent with the cost assumption contained in the Syama Definitive Feasibility Study Update.
The new power station will deliver cost effective, environmentally friendly, capital efficient power and long-term electricity cost savings of up to 40% while reducing carbon emissions by approximately 20%.
The Power Supply Agreement includes an incentive program whereby Aggreko may share 25% to 50% of the resulting fuel savings for Resolute if improved efficiencies for key performance indicators are achieved. This provides an incentive to further reduce the cost of power for Resolute. The new power plant will be funded and operated by Aggreko with limited capital contribution required by Resolute.
Managing Director and CEO, Mr John Welborn, was pleased to lock in power cost savings for Syama while delivering environmental and social benefits:
“Aggreko is the right partner to support our power ambitions at Syama. I am delighted work has commenced and that we will deliver the power cost savings we have promised at Syama. A key component of our cost reduction strategies at Syama is the provision of lower cost power. We can now look forward to significantly lower energy costs, in line with our Life-of-Mine DFS expectations, as we focus on maximising the efficiencies of our new automated underground mine. Together, these initiatives, will allow us to deliver lower unit costs as well as providing an environmentally friendly, capital efficient expandable power solution for Syama.”