Pacific Energy’s KPS subsidiary has signed contract variations for two power generation agreements with Saracen Mineral Holdings that will see the dual-fuelled power station at the Carosue Dam operation, in Western Australia, expanded at the same time as work is extended at the gold miner’s gas-fired power facility at the Thunderbox operation.

The Carosue Dam expansion will occur in two stages over the next 12 months, initially by 2 MW and subsequently by another 6 MW, to a total of 26 MW. The contract term will also be extended from January 2023 to August 2024, Pacific Energy said.

Carosue Dam will soon undergo a mill expansion from 2.4 Mt/y to 3.2 Mt/y with feed coming from both underground and open-pit mines.

The contract for the 17 MW gas fired power station at the Thunderbox site will be extended from November 2020 to August 2024, meanwhile.

Pacific Energy’s total contracted capacity now stands at 381 MW and the weighted average remaining contract duration is approximately four years, the company noted.

Pacific Energy’s Managing Director, James Cullen, said: “Saracen is a key and substantial customer for us, representing around 12% of build-own-operate revenues, so these awards are very material and important to us. We look forward to continuing the sound relationship that has been built over the years and completing the installations of additional capacity at Carosue Dam.”