Cost effective hybrid power that lowered gold production costs
Cost effective hybrid power that lowered gold production costs
- The Challenge
Resolute Mining Limited, an ASX and LSE listed gold mining company has produced over eight million ounces of gold from 10 gold mines.
- The Impact
$10 million cost savings in the first full year of operation and reduced environmental impact ensuring long term mine sustainability
- The Solution
As Aggreko had been providing and operating a 28 MW diesel power plant on the site that augmented the existing diesel power station for a few years, we had both the reputation and credibility to step in and offer support the optimisation and hybridisation of their plant.
Client:Resolute Mining Limited (Resolute)
Location:Mali, Africa
Sectors:Mining
The Challenge
Resolute Mining Limited, an ASX and LSE listed gold mining company has produced over eight million ounces of gold from 10 gold mines
As part of its commitment to delivering a life-of-mine allin sustaining cost of US$746/oz at its Syama Underground Mine in Mali, they needed to define a lower cost power solution relative to its existing source of power.
The Syama Gold Mine was powered by singular diesel generators that were no longer the most efficient compared to newer technology now available. At the mercy of diesel, notoriously a fluctuating high-cost fuel, it has become an expensive solution. Furthermore, the generators had to run constantly to provide system stability that the mine needed.
After investigating the possibility of a grid connection, which was disregarded based on time and cost, Resolute launched a tender with the target of achieving a 40% reduction in the cost of electricity (COE). With Resolute focused on securing a more environmentally friendly solution, the environmental impact of the power solution being offered was a key consideration.
Resolute also wanted a solution which offered low-cost power without needing to make a significant upfront capital investment so that the Company could conserve capital for deployment for growth.