Tag Archives: Contract Power Australia

Strandline seals energy agreement for Coburn with Contract Power Australia

Strandline Resources has executed a 15-year electricity supply agreement (ESA) with Contract Power Australia, a wholly owned subsidiary of Pacific Energy Ltd, to build, own, operate and maintain (BOOM) the power generation and LNG storage and regasification facilities for the Coburn mineral sands project in Western Australia.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas-fuelled generation with state-of-the-art solar and battery storage technology.

The executed ESA, which follows Contract Power Australia being appointed preferred contractor at Coburn, enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020. This study anticipated a development capital for the project of A$260 million ($199 million), excluding financing costs.

Contract Power specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline said.

Coburn’s power station will be located near the mineral separation plant. The power station is designed to be suitable for a maximum demand capacity of 15 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar (renewable) penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

The contract is based on a 15-year BOOM commercial model with fixed and variable payment regime for power consumed over the term, Strandline said. The contract provides for incorporation of wind turbine and other new generation technology solutions under agreed commercial structures as and when they become commercially attractive to the project.

Strandline Managing Director, Luke Graham, said the execution of this major development and operational contract marked another key step in the company’s strategy to bring Coburn into production as well as establishing an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Capricorn Metals secures gas power for Karlawinda gold project

Capricorn Metals says it has entered into agreements with APA Group for the transportation of gas from the Goldfields Gas Pipeline (GGP) to the Karlawinda gold project, in Western Australia.

As part of the agreement, APA will also build, own and operate the lateral pipeline that links the GGP to Karlawinda. It is expected that some 3 Tj/d of gas will be transported through the pipeline for power generation at Karlawinda.

Capricorn has also recently executed a power supply agreement with Pacific Energy subsidiary Contract Power Australia where, under the terms of the agreement, Contract Power will build, own and operate a 16 MW gas-fuelled power station with 2 MW of diesel back-up at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 105,000-120,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Capricorn Executive Chairman, Mark Clark, said: “We look forward to a successful long-term partnership with these high-quality companies to meet our energy requirements. The completion of these contracts, combined with the current low price of gas in Western Australia, present Capricorn with a very attractive cost of power generation for the operation of the Karlawinda project.”