Cemig to supply renewable power to gold project in Brazil

Brazilian utility Cia Energetica de Minas Gerais SA (BVMF:CMIG4), better known as Cemig, has signed a binding multi-year deal to supply power from renewable hydroelectric sources to a local gold project of Canada's G Mining Ventures Corp (TSXV:GMIN, OTCQX:GMINF).

The fixed-price power purchase agreement (PPA) will be on a consumption basis, with no take-or-pay obligations. The clean electricity will be supplied from March 1, 2024 until December 31, 2026, a press release said last week.

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Under the deal, Cemig will supply more than 100% of the expected power demand at the Tocantinzinho Gold Project (TZ) during commissioning, ramp-up and initial commercial production.

The TZ project is located in Brazil's northern state of Para and is currently under construction. The open-pit gold deposit contains two million ounces of reserves.

Cemig is an energy provider with a total generating capacity of 3.3 GW, including hydroelectric, wind and solar power assets. The Brazilian firm earlier this year announced a new tender to sell 41.2 MW of small local hydropower plants (HPPs).