Centamin said its new solar plant at its Sukari Gold Mine in Egypt has entered the final stages of commissioning and is delivering savings ahead of expectations.
According to the gold miner the plant has seen consistent delivery of 36MWDC (nameplate capacity), converting to 30MWAC of power since early September.
In addition, it said there has been 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 22mln litres per annum
This will mean a potential US$20mln in annual cost savings at current diesel prices, said the miner.
In total, there will be an expected reduction in Scope 1 GHG emissions of 60,000 tonnes CO2 equivalent per annum and a subsequent reduction in volume of diesel trucked to site
Full commissioning of the plant is expected in the final quarter of 2022.
In addition, Centamin said it had started engagement with government and independent power providers over the supply to the mine of 30-50MWAC of grid power with an internal evaluation underway for potential integration from 2024
Access to 50MWAC grid power supply would create the potential to fully displace the use of diesel for power generation at Sukari.
“The minimum 30MWAC grid power combined with the existing 30MWAC 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,” said CEO Martin Horgan.
"Delivery of this critical project is instrumental to our ongoing commitment to reduce our reliance on diesel fuel, minimise greenhouse gas emissions and realising 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."
Grid power in Egypt is generated from natural gas and a mix of renewables, such as hydro, solar and wind, with industrial grid tariffs significantly cheaper than the cost of power generation using diesel fuel.