JOHANNESBURG (miningweekly.com) – ASX-listed zinc developer New Century Resources has entered into a four-year A$100-million gas supply agreement (GSA) with independent oil and gas producer Santos for its Mount Isa power generation facilities in the Lower Gulf of Carpentaria.
While the full terms of the GSA remain confidential, the commercial agreement was established through a highly competitive tender process.
“We are very pleased with the Santos GSA, which provides the required gas supply volumes for restarting operations and gives us significant flexibility during ramp up at the mine,” New Century utilities manager Michael Pitt said in a statement on Thursday.
New Century and Santos have spent several months working collaboratively to develop a strong understanding of Century’s start-up gas supply requirements, which has allowed the parties to establish a contract structure meeting the needs of the project.
Pitt noted that the GSA was a key contract for the company and formed part of the company’s overall power strategy, targeting reinvigoration of existing grid power infrastructure for the Mount Isa operation.
“Securing gas in the currently tight Australian east coast domestic market was identified early by New Century management as a key risk to the successful development of the project,” he said.
New Century remains on track to deliver grid power for scheduled operations and first zinc concentrate production in the third quarter.