PERTH (miningweekly.com) – Africa-focused gold miner Resolute Mining has signed a power supply agreement with power provider Aggreko for the installation, operation and maintenance of a new power station at its Syama operation, in Mali.

The power station will combine solar, battery and thermal generation technologies, with the Stage 1 operation consisting of a 30 MW thermal power plant and 10 MW battery, which will be fully operational by the end of 2020.

The Stage 2 project will see the addition of 20 MW of solar power and an additional 10 MW thermal plant, which will become operational in 2023.

Resolute on Wednesday said that the new power plant would be modular and expandable to accommodate future mine growth and an electric fleet.

Under the terms of the agreement, Resolute will pay a levelised cost of energy tariff of 15c per kilowatt hour, based on the current heavy fuel oil prices, compared with the current energy cost of between 23c and 26c per kilowatt hour, based on the prevailing diesel price.

Resolute said that the new power station would deliver cost effective, environmentally friendly, capital efficient power, and long-term electricity cost savings of up to 40%, while also reducing carbon emissions by around 20%.

“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,” said Resolute MD and CEO John Welborn.

“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 definitive feasibility study expectations, as we focus on maximizing 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.”

The power agreement includes an incentive programme under which Aggreko could share between 25% and 50% of the resulting fuel savings if provided efficiencies for key performance indicators were achieved. This incentive is aimed at further reducing the cost of power for Resolute.

The new power plant will be funded and operated by Aggreko, with limited capital contribution from Resolute.