Allied Gold secures hydropower supply for mining project in Ethiopia

Allied Gold Corporation (TSX:AAUC) has secured a steady supply of hydroelectric power for its Kurmuk Gold Project in Ethiopia throughout the life of the mine under a power offtake deal signed with the local state-owned electric producer.

The power purchase agreement (PPA) signed with Ethiopian Electric Power (EEP) has a term of 20 years, with an option to be extended. It has a fixed flat energy charge of USD 0.04 (EUR 0.036) per kWh, Allied Gold said in a press statement on Monday.

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Under the PPA, the Kurmuk Gold Mine will benefit from Ethiopia's predominantly renewable energy sources. The grid connection of the site will be secured by the government which will have its shareholding in the project increased to 7% from 5%.

The scheme envisages on-site power to be distributed via a network of 11-kV power lines. Electrical grid power will be supplied to the operation via a 75-km, 132-kV power line, with substations in the nearby city of Asosa.

The Kurmuk Gold Project is currently under development. The mine is expected to begin operations in the second quarter of 2026.

(USD 1 = EUR 0.906)