Enerji Signs MoU with Poseidon Nickel

THE BOURSE WHISPERER: Enerji Limited has entered into a memorandum of understanding with Poseidon Nickel.

Enerji is an emerging green power utilty while Poseidon is the developer of the largest high grade nickel sulphide deposits of any exploration and development company in Australia.

Under the MoU Enerji will provide assistance to Poseidon on aspects of its feasibility study relating to power generation and specifically the implementation of a waste heat recovery system based around an Opcon Powerbox.

Following a successful feasibility study and subject to some site conditions being met, Enerji and Poseidon will enter into bona fide negotiations for a power purchase agreement.

Construction of the powerhouse and the associated waste heat recovery system would commence in the second half of 2012.

The addition of an Opcon Powerbox will provide up to 700 kilowatts of fuel and emissions free power to Poseidon’s Windarra powerhouse.

This power will assist in meeting the additional power requirements for its recently announced plans to double mine throughput as well as reducing fuel consumption and greenhouse gas emissions.

“Enerji is very pleased to be assisting Poseidon with the clean energy aspects of its substantial redevelopment of the Windarra mine,” Enerji chief executive officer Greg Pennefather said in the company’s announcement to the Australian Securities Exchange.

Poseidon is focussed on producing its first concentrate from the Mt Windarra mine in 2013.

The company is currently refurbishing the Mt Windarra mine and is completing the drilling and JORC resourcing of the Cerberus nickel deposit, which was discovered in 2008.

The Mt Windarra underground mine and the Cerberus deposit are contained in the same tenement package, located 260 kilometres from Kalgoorlie in the northern goldfields of WA.

The total lease package covers approximately 290 square kilometres.

“This is a text book application of our waste heat recovery system for a mine located in the Northern goldfields of Western Australia where diesel is the only option for power generation.” Poseidon Nickel chief executive officer David Singleton said.

“Poseidon is committed to applying innovative practices to developing the Windarra project.

“We believe that the Enerji solution to waste heat recovery will deliver real benefits to our shareholders and help to minimise our environmental footprint.”