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Marengo looks at new power options for Yandera

15th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX- and TSX-listed Marengo Mining has signed a memorandum of understanding (MoU) with the Madang provincial government’s business arm regarding a possible power supply for its Yandera copper/molybdenum/gold project.

The MoU with the Papua New Guinea-based Madang Development Corporation (MDC) would see the two parties explore the possibility of Marengo becoming an offtake party in an industrial power supply solution.

MDC is currently in discussions with international investment groups looking to invest in power generation and supply, within Madang province.

Under the terms of the MoU, Marengo and MDC have agreed to cooperate to advance these discussions.

In May, Marengo delayed the results of a feasibility study on its Yandera project after the preferred third-party power supplier decided to withdraw from the supply agreement. This resulted in an unexpected cost escalation for the project, and prompted Marengo to launch an optimisation programme.

Capital costs for the project have initially been estimated at between $1.7-billion and $1.85-billion. Early indications point to the Yandera project being able to sustain a throughput rate of 30-million tons a year.

Edited by Creamer Media Reporter

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