Resolute Mining to get solar hybrid power plant at Mali gold mine

Ignite Energy Projects Pty Ltd will build and operate in Mali a 40-MW power plant combining solar photovoltaic (PV), battery and heavy fuel oil (HFO) technologies to power Resolute Mining Ltd’s (ASX:RSG) Syama Gold Mine operations.

The gold producer announced on Monday the signing of a joint development agreement (JDA) with Ignite Energy for the Syama Solar Hybrid Power Plant project, to be realised under the independent power producer (IPP) model.

Ignite will finance, own and operate the power facility. It will sell the output to Resolute Mining under a power purchase agreement (PPA) for 12 to 20 years. The PPA is to be finalised in the first half of 2019 and work on the project will also start next year, with commissioning planned for 2020.

Resolute Mining says this will be the largest off-grid, fully integrated hybrid power plant for a stand-alone mining operation globally. It will replace a 28-MW diesel-fired plant at Syama, bringing savings of up to 40%. The current cost of power generation at Syama ranges between USD 0.20 (EUR 0.18) and USD 0.24 per kWh, depending on diesel fuel prices.

John Welborn, CEO of Resolute Mining said that this project is key for delivering the expected sub-USD 750 per ounce All-in-Sustaining-Cost for the Syama Underground Gold Mine.

Resolute Mining conducted an international tender for an IPP project in 2018. The miner sought the most cost effective, environmentally friendly power solution for Syama.

(USD 1 = EUR 0.89)

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