Almonty Industries Inc announces that it has signed a Power Supply and Consumption Agreement with Korea Electric Power Corporation (KEPCO) for the construction and supply of a power line to the Sangdong Tungsten Mine located in the Republic of Korea.
The Power Supply and Consumption Agreement, entered into on May 29, 2019 between Almonty Korea Tungsten Corp (AKTC), a wholly-owned subsidiary of Almonty, and KEPCO, a state-owned monopoly power supplier, is for the construction and installation of a 10 MW exclusive power line to the site of the Sangdong mine. Under the Power Supply & Consumption Agreement, KEPCO is responsible for building the high voltage power line (22.9 kV) of 22.8 km and auxiliary facilities connecting the Taebaek Sub-station of KEPCO and the transfer point designated inside the Sangdong mine site.
The construction cost of approximately $1.7 million will be entirely borne by KEPCO as a part of its power line subsidy program for industrial promotion. KEPCO will commence the construction of the power line with the target completion by June 23, 2020, which will be several months before the scheduled completion of the processing plant at the mine.
Almonty’s Chairman, President and CEO Lewis Black said: “The signing of the Power Supply and Consumption Agreement for the Sangdong mine development will be another important and meaningful step to Almonty for bringing what was historically one of the largest and lowest-cost tungsten mines in the world back into production. We are particularly pleased and grateful for KEPCO’s subsidised construction of the power line.
He adds: “The subsidised power line extension by the government power company, in addition to the subsidised connection of potable water line by the County Government in 2017, signifies the continued support of the South Korean government for the development of the Sangdong Mine. The in-time supply of power will contribute to ensuring the scheduled completion of the processing plant and other facilities at the Sangdong Mine, enabling AKTC to meet targeted commercial production in Q4 2020.”
