CENTAMIN is in discussion with the Egyptian government regarding supply of grid power to its Sukari gold mine that will enable the firm to entirely cut diesel consumption.
Martin Horgan, CEO of Centamin said the intention was for the company to dovetail grid power with 36MW of solar generated power due to be commissioned in the fourth quarter.
The initial proposal is for the supply of between 30MW to 50MW of grid power to Sukari from 2024 which will enable Sukari to operate during night time hours. The solar power unit, built by Centamin, will supply the mine with energy during daytime.
The solar plant will reduce Scope 1 greenhouse gas emissions (emissions generated directly by the mine) by 60,000 tons of carbon dioxide equivalent a year.
Centamin calculates that the solar plant alone will replace 70,000 litres of diesel daily, or some 22 million litres on average a year. This equates to cost savings of $20m a year in diesel at current prices for the fuel.
“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,” said Horgan.
Tapping into power supply of a national grid that is weighted towards gas, hydropower or renewable power is increasingly being favoured by mining companies.
On Wednesday, AngloGold Ashanti announced a $1.1bn investment in renewable projects that also included relying on grid power for its mines in Tanzania and Brazil which were supplied by gas and hydropower respectively.
