PERTH (miningweekly.com) – Gold miner Newcrest Mining has struck a 15-year renewable power purchase agreement (PPA) with Tilt Renewables at its Cadia mine, in New South Wales.

Tilt Renewables is the developer of the Rye Park wind farm, in New South Wales.

Under the PPA agreement, Newcrest would contract some 55% of  Rye Park’s planned 400 MW output from January 2024, which accounts for more than 40% of Cadia’s energy demand for that calendar year.

Newcrest said on Wednesday that the PPA, along with the forecast decarbonisation of the New South Wales electricity generation, is expected to deliver a near 20% reduction in the company’s greenhouse gas emissions, and was a significant step towards achieving its target of a 30% reduction by 2030.

“This new contract secures renewable for our Cadia operation, reduces carbon emissions and helps us maintain competitive energy costs,” said Newcrest MD and CEO Sandeep Biswas.

“We are delighted to partner with Tilt Renewables on this exciting development project. Tilt Renewables is a proven developer and operator of wind farms in Australia, and importantly, shares Newcrest’s values in terms of ensuring its projects benefit local communities.

“This is a critical step in our transition to sustainable energy use at our operations. As part of our climate change policy released last June, we have committed to a significant reduction in emissions intensity, and this agreement is a major step towards delivering on that objective,” said Biswas.

“We continue to explore ways to reduce Cadia’s emissions intensity and our long-term aim is to virtually eliminate Cadia’s energy-related greenhouse gas emissions. In addition, we continue to pursue emissions intensity reduction initiatives at our other operating sites,” he said.

The PPA is condition on Tilt Renewables achieving financial close for the Rye Park wind farm, and is contract for difference which requires no upfront capital investment by Newcrest.