TSX and LSE-listed CENTAMIN is in the final stages of commissioning a solar plant at its Sukari gold mine in Egypt. Not only does this reduce operating costs but also greenhouse gas emissions.
Sukari is Centamin’s flagship asset and is Egypt’s largest and first modern gold mine, as well as one of the world’s largest producing mines. Since production began in 2009, Sukari has produced circa 5 Moz of gold, and today has a projected mine life of 12 years. The company is currently undertaking an exploration programme which includes identifying the potential for underground expansion at the mine.
Since early September, the solar plant has been consistently delivering 36 MWDC (nameplate capacity), converting to 30 MW of power. The switch to this renewable energy source has resulted in a reduction in exposure to volatile fuel pricing, with commissioning saving up to 70 000 litres of diesel per day and averaging a reduction in diesel consumption of 22 million litres per annum. This also equates to a potential US$20 million in annual cost savings at current diesel prices.
Furthermore, it is expected that the solar plant will reduce greenhouse gas emissions by 60 000 t CO2 equivalent per annum and a subsequent reduction in the volume of diesel trucked to site. Full commissioning is expected later this year.
Tapping into the grid
Furthermore, continued progress has been made to assess the opportunity to utilise Egyptian grid power at Sukari. To that end, there has been active engagement with government and independent power providers. Initial proposals to supply 30-50 MW of grid power to Sukari have been received and an internal evaluation is underway for potential integration from 2024. 50 MW of grid power supply creates potential to fully displace the use of diesel for power generation at Sukari.
The minimum 30 MW of grid power combined with the existing 30 MW of solar power creates the potential to operate during daylight hours without using any diesel power generation and substantially offsets diesel consumption during night-time hours. Grid proximity to site and existing infrastructure indicate a low capital intensity. The Egyptian grid power is generated from natural gas and a mix of renewables, such as hydro, solar and wind, creating the opportunity to further reduce Sukari’s greenhouse gas emissions.
Furthermore, industrial grid tariffs are significantly cheaper than the cost of power generation using diesel fuel. Centamin CEO Martin Horgan commented: “Delivery of this critical project is instrumental in our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas 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.”
Source: miningreview
