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Telson Mining signs green energy purchase agreement for the Campo Morado mine in Mexico

Last updated: 13:52 31 Oct 2018 GMT, First published: 09:52 31 Oct 2018 GMT

Solar panels
Telson added that it sees estimated operating cost savings from the deal of approximately C$2mln during the first-year

Telson Mining Corp. (CVE:TSN) has signed a green energy purchase agreement for the Campo Morado mine in Mexico which will make the cost of electricity per kilowatt hour (kWh) around 32% lower than the last nine-month average price paid and 54% lower than September's kWh price alone.

In a statement, the Canadian-based mining company - which has two Mexican gold, silver and base metal mining projects – said the 10-year term take-or-pay purchase agreement is at a cost of MXN$1.10 per kWh, equivalent to C$0.072 per kWh at current exchange rates.

The firm said the green energy agreement with Energia Solar Alaia IV, S.A.P.I de C. V. will come into effect no later than June 2019, or upon completion of the construction of Energia Solar's renewable energy plant. Telson has committed to taking 42.00 gigawatt per hour (GWh) per year.

Telson added that it sees estimated operating cost savings from the deal of approximately C$2mln during the first-year, equating to an estimated 3.5% decrease in overall current operating costs.

Antonio Berlanga, Telson’s CEO said: "The renewable power purchase agreement with Energia Solar provides Telson with a steady supply of renewable source generated power at an inflation-indexed fixed price that will significantly reduce environmental footprint and reduce operating costs and future profitability.

“Additionally, this agreement satisfies local regulations that require Campo Morado mine to use a minimum of 25% green generated energy.”

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