Pacific Energy signs 3MW power contract
THE BOURSE WHISPERER: Kalgoorlie Power Systems, a wholly owned subsidiary of Perth-based power generation company Pacific Energy has signed a new electricity supply contract with Avoca Mining, a subsidiary of Alacer Gold Corp.
The contract is for KPS to build, own and maintain the three mega-watt Chalice gold mine power station.
The new electricity supply contract has a term of 3 years for the Chalice underground gold mine located at the Higginsville gold project near Kambalda, Western Australia.
Pacific Energy said it is continuing to progress a number of other opportunities and is currently in negotiations for new electricity supply contracts with a number of resource companies.
These negotiations are at an advanced stage and the company said it expects they could be signed off soon.
“The signing of this new three year contract to supply electricity to the Chalice gold mine expands on our existing eleven mega-watt Higginsville Power Station and electricity supply arrangements for the Higginsville gold project,” Pacific Energy managing director Adam Boyd said in the company’s ASX announcement.
“The board of the company is pleased to secure this opportunity to continue to support Alacer’s high quality gold operations in Western Australia.
“Alacer and KPS are also discussing the opportunity to retrofit our exclusive waste heat recovery fuel saving technology to the existing Higginsville Power Station in order to reduce its fuel consumption and carbon emissions footprint.
“The proposed Carbon Tax impost and related diesel fuel excise rebate reduction will further enhance the value of the fuel savings achieved by our waste heat recovery system.
“The continuing appeal of the KPS industry benchmark electricity supply solutions to the resources sector is great validation of the capability and reputation of KPS.
“We are particularly pleased to be partnering with Alacer to expand gold production at the Higginsville Gold Project.
“We are continuing to advance new electricity supply contract negotiations and look forward to securing new and/or expanded electricity supply contracts in the near future.”