Re-Configuring Power Station To Increase Gas Generation And Greener Energy
Wiluna Mining Corporation Limited (ASX WMX) has entered to a ten-year extension to its existing power contract with Contract Power Group (CPG) at the Wiluna Mining Operation.
The 10-year contract extension, which will now exist until at least 2031, has been negotiated to:
Meet the forward needs of the Stage 1 Development Project, to provide a total rated power output of the Power Station of 14.1 MW.
Re-configures the power station to increase gas generation and add a 2.0 MW Battery Energy Storage Unit which significantly reduces the need for back up diesel generation (4 diesel generators are being removed).
Allow amortisation of costs over a longer period and therefore reduces Wiluna’s overall operating power charges; and
Provides a solid base for a future mixed renewables Power Station envisaged for the Stage 2 Development Project expansion in 2023.
CPG has provided Wiluna’s power since June 2016. Our alliance with CPG has delivered economic and reliable power to Wiluna Mining over this period. The electrical power generated for Wiluna Mining is derived from natural gas with diesel backup.
Contract Power Group are experts in efficient generation of electrical power and in decarbonisation by harnessing off-grid wind or solar power. Wiluna are refining its plans with CPG to include decarbonisation within our methods of power generation at site. This may also moderate our exposure to future volatility in the cost of hydrocarbon fuels.
Wiluna Mining’s Executive Chair, Milan Jerkovic, said the reconfiguration provides a solid base for several power sources, including renewable energy as envisaged for the Stage 2 Development Plan during 2023.
Wiluna will now focus on renewable power studies and options during 2021 and 2022 to:
- assess the right mix of renewables including solar, wind or pumped storage options;
- determine how best to integrate renewables into the total power delivery for an expanded operation; and
- optimise the decarbonisation of power generation with reliability and cost effectiveness.
Mr Jerkovic said the company’s work with CPG aligns with two of the United Nations Sustainable Development Goals as well as their common themes in mining for affordable and clean energy that includes the replacement of diesel generators and diversification of power sources, such as renewable energy. Wiluna keeps an open mind on collaboration or leverage with our stakeholders on local energy initiatives.
“We are excited by company efforts to strengthen its operations by generating electrical power with greater efficiency. Our operational energy efficiency and renewable sources of power is consistent with initiatives worldwide and across the mining industry. There will also be a longer-term preference for the development of mines with lower emission intensities for greenhouse gases. Wiluna Mining plans are consistent with these trends,” Mr Jerkovic said.
“We look forward to working with Contract Power to not only transitioning the Wiluna Mine once again into one of Australia’s biggest and most profitable gold mines, but to helping it become one of Australia’s cleanest mines.”