Egypt-focused gold miner Centamin says the solar plant at its Sukari gold mine has entered the final stages of commissioning and is delivering savings ahead of expectations.
The company notes that it has already seen a reduction in fuel consumption and energy costs as a result of the plant.
There has been a consistent delivery of 36 MW of direct current power, converting to 30 MW of alternating current (AC) power since early September.
This has also reduced Centamin’s exposure to volatile fuel pricing, with commissioning saving up to 70 000 ℓ a day of diesel and averaging a reduction in diesel consumption of 22-million litres a year.
Centamin anticipates a potential $20-million in yearly cost savings at current diesel prices.
Further, the solar plant is helping Sukari reduce its Scope 1 greenhouse-gas (GHG) emissions by 60 000 t/y of carbon dioxide-equivalent.
Meanwhile, Centamin says continued progress has been made to assess the opportunity to use Egyptian grid power at Sukari.
The Egyptian electricity grid is used to transport electricity generated from natural gas and a mix of renewables, such as hydropower, solar and wind to end-users.
Centamin has engaged with the Egyptian government, as well as independent power providers regarding the procurement of 30 MW to 50 MW of AC power for use at Sukari from about 2024.
The gold miner points out that the supply of 50 MW of grid power at Sukari will enable the mine to entirely halt the use of diesel for power generation at the mine. That should contribute to significant cost savings, as grid tariffs are said to be “significantly” cheaper than the cost of diesel fuel.
“Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise GHG emissions and realise material cost savings.
“The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders,” says CEO Martin Horgan.