- As part of a green energy initiative, Gold Road Resources (GOR) has contracted ASX 200-lister APA Group (APA) to increase its Gruyere Gold Mine’s power capacity
- The WA-based mine is held in a 50:50 joint venture between Gold Road and Gold Fields and has an existing power capacity of 45 megawatts
- Over two phases of expansion works, APA Group will increase this by 45 per cent to 65 megawatts
- APA may be paid up to $38 million to install another gas engine by mid-2021, as well as a solar farm and battery energy storage system by the end of next year
- Gold Road is up a slight 2.01 per cent and shares are trading at $1.27
- APA is also trading up a slight 0.20 per cent at $10.13 per share
Gold Road Resources (GOR) and Gold Fields’ subsidiary, Gruyere Mining, have reported on initiatives to increase power capacity at the Gruyere Gold Mine in WA.
The Gruyere mine is held in a 50:50 joint venture between Gold Road and Gold Fields. Gruyere boasts a 12-year mine life averaging 300,000 ounces of gold production per year.
Gold Road is focused on implementing sustainable power expansion for the mine as it is set to reduce carbon emissions by around 16,000 tonnes of carbon dioxide equivalent per annum. Additionally, its expansion plans will increase plant throughput up to a targeted 10 million tonnes per annum.
“The power expansion at Gruyere provides an elegant technical solution that reduces greenhouse gas emissions, decreases costs and enables an increase in plant capacity up to a targeted 10Mtpa from the current nameplate design of 8.2Mtpa,” Managing Director and CEO Duncan Gibbs said.
Under an electricity supply agreement that will run until November 2033, Gold Road has contracted ASX 200 company APA Group (APA) to increase the mine’s installed power capacity by 45 per cent from 45 megawatts to 64 megawatts.
“Consistent with our purpose to strengthen communities through responsible energy, we are delighted to be working with the Gruyere JV on this innovative energy solution,” APA CEO and Managing Director Rob Wheals said.
Under phase one, APA will install an additional four-megawatt gas engine by mid-2021. Phase two includes the installation of a 13-megawatt solar farm and 4.4-megawatt battery energy storage system by the end of next year.
“The installation of renewables as part of our total power solution at Gruyere reflects Gold Fields’ strategic objective to strengthen energy security, optimise energy costs and reduce our carbon footprint through the adoption of innovative new technologies,” Gold Fields Executive Vice President Stuart Mathews said.
The expansion works are expected to cost between $32 and $38 million.
Gold Road is up a slight 2.01 per cent and shares are trading at $1.27 at 11:30 am AEDT. APA is also trading up a slight 0.20 per cent at $10.13 per share.