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Resolute Mining signs power supply agreement with Aggreko for Syama solar hybrid power station

The new Syama power solution will combine world leading solar, battery and thermal generation technologies as well as improved environmental outcomes including a reduction in carbon emissions

Resolute Mining Limited - Resolute Mining Limited signs power supply agreement with global provider Aggreko to install power station in Mali
The proposed site layout for the Syama hybrid power station site

Resolute Mining Limited (ASX:RSG) has signed a power supply agreement (PSA) with Aggreko plc for development of the new solar hybrid modular power station at Syama Gold Project in Mali.

The PSA will see the power generation provider install, operate and maintain the power station, which will combine world-leading solar, battery and thermal generation technologies, with the capital cost to be funded by Aggreko.

Execution of the PSA follows the signing of a Heads of Terms with Aggreko in November for the development of the new power solution for the the Syama operation.

The one integrated power dispatchable solution will ensure instant power, improved power quality, spinning reserve replacement resulting in fuel savings, optimised plant operation, maintenance efficiencies and reduced emissions.

Development work is underway with the first phase expected to be operational from December 2020.

“Lower power costs”

Managing director and CEO John Wellborn said: “Aggreko is the right partner to support our power ambitions at Syama.

“I am delighted work has commenced and that we will deliver the power cost savings we have promised at Syama.

“A key component of our cost reduction strategies at Syama is the provision of lower cost power.

“We can now look forward to significantly lower energy costs, in line with our Life-of-Mine DFS expectations, as we focus on maximising the efficiencies of our new automated underground mine.

“Together, these initiatives, will allow us to deliver lower unit costs as well as providing an environmentally friendly, capital efficient expandable power solution for Syama.”

Terms of the PSA

Resolute will pay a levelised cost of energy tariff of US$0.15 per kilowatt hour (kWh) based on current heavy fuel oil prices.

This cost compares favourably with the current energy cost at Syama which ranges from US$0.23/kWh to US$0.26/kWh based on prevailing diesel prices.

Power costs provided within the PSA are consistent with the cost assumption contained in the Syama Definitive Feasibility Study Update released in July 2018.  

The new power station will deliver cost-effective, environmentally-friendly, capital efficient power and long-term electricity cost savings of up to 40% while reducing carbon emissions by approximately 20%.

Syama power plant update

Work is underway on the design of the new power plant, which will be delivered in two stages.

Stage-I is expected to be completed in 2020 and will comprise the installation of three new thermal energy modular block generators as well as a battery storage system.

The new modular block units will be fuelled using a refined heavy fuel oil (IFO 180) and also have the capability to run on diesel as a back-up fuel, providing greater contingency to the operation.

Resolute and Aggreko will also partner on community sustainable power solutions.

Additional power for future growth  

In stage-I, new modular block technology will initially provide 30 megawatts (MW) of power and will incorporate an additional 10MW Y-cube battery storage system.

The battery will provide spinning reserve displacement and is planned to be installed by July 2020.

Stage-II will include a 20MW solar array which will be constructed on the surface of the existing Syama Tailings Storage Facility (TSF) thereby maximising positive environmental outcomes and augmenting Resolute’s rehabilitation program.

This solar array will enable the 10MW battery storage system to manage the solar power contribution to the overall Syama power system and smooth out fluctuations in solar power output to facilitate integration into the hybrid system.

The timeline of the solar component will depend on decommissioning of the existing TSF and is expected to be completed during 2023.

Resolute's site infrastructure layout for the new hybrid power plant will include space to accommodate a fifth 10MW modular block unit, enabling the mine to add additional power capacity if needed to support future growth.

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Resolute Mining CEO discusses new hybrid power station at its Syama Gold Project

Resolute Mining Limited's (ASX:RSG) (LON:RSG) managing director and CEO John Welborn speaks to Proactive's Andrew Scott at the Mines & Money conference in London 2019. This week the miner's announced they're to develop a new hybrid modular power station at their Syama Gold Project in...

on 26/11/19

4 min read