Tag Archives: Goldfields Gas Pipeline

Red 5 taps Zenith Energy for hybrid power options at King of the Hills gold project

Environmental, Mineral project development, Mining services, Power supply for mines, Precious metals, , , , , , , , , , , ,

Red 5 Ltd has entered into a Power Purchase Agreement with a subsidiary of Zenith Energy Ltd that will see the growing Australia-based power producer build, own and operate approximately 30 MW of hybrid power generation capacity to service the needs of the King of the Hills (KOTH) project in Western Australia.

The power inputs as part of the BOO agreement comprise high efficiency reciprocating gas fuel power generation together with a 2 MW photovoltaic solar farm (an example from Zenith’s other work shown above) and a battery energy storage system.

Power supply to the site is planned to commence in the March quarter of 2022 with an initial term of 10 years. The contract includes provision for a potential future upgrade to the power station to support increased plant throughput beyond the initial planned 4 Mt/y run rate, Red 5 says.

Gas will be supplied from the Goldfields Gas Pipeline, 12 km west of the mine, under separate contracts, the company clarified.

Red 5 Managing Director, Mark Williams, said the award of the agreement marked another important construction milestone for the King of the Hills project while, at the same time, helping to achieve one of the company’s environmental, social and governance commitments to reduce the carbon footprint of the project.

“We are pleased to have signed the Power Purchase Agreement with Zenith, an experienced power producer which provided us with a compelling hybrid thermal and sustainable power solution that includes renewable energy,” he said. “Zenith’s combination of a gas and solar power station, supported by a battery energy storage system, provides the efficiency and stability required for the processing plant and infrastructure to enable King of the Hills to be a long-life, low-cost gold producer.”

The KOTH project is an open pit and underground gold deposit with a projected mine life of over 16 years. This could see the company produce 176,000 oz/y of gold over the first six years, according to a recent feasibility study.

Capricorn Metals moves into final development stretch at Karlawinda gold project

Comminution of minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, Power supply for mines, Precious metals, , , , , , , , , ,

Capricorn Metals has confirmed Way Electrical Pty Ltd will carry out the plant electrical installation at its Karlawinda gold project (KGP) in Western Australia following a competitive pricing process.

The contract is in the order of A$5 million ($3.6 million) and is in line with Capricorn’s budget estimate, it said.

This is the final significant construction contract for the build of the processing plant at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 110,000-125,000 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.

Alongside this contract award, the company said the manufacture of the ball mill for the KGP had been completed by CITIC in Luo Yang, China.

The mill components have been subjected to and passed all the required manufacture quality control inspections, and tests and are now in various stages of despatch for shipping to Australia, it explained.

With the major (and oversize) components due for departure on November 21, the estimated arrival in Port Hedland is December 10, allowing for the oversize mill components to get to the KGP by mid-December.

In addition to this, the steel pipe for the 40 km of lateral gas pipeline from the Goldfields Gas Pipeline (GGP) to the KGP power station arrived in Fremantle from Korea and has been delivered to site.

APA, the build-own-operator of the pipeline, has (in consultation with Capricorn) awarded the pipeline construction contract to McConnell Dowell, which is currently mobilising to site with a view to commencing construction in December 2020.

Once operational, the lateral pipeline from the GGP to KGP will transport around 3 Tj/d of gas for power generation at KGP.

The KGP power supplier, Contract Power Australia, has progressed fabrication of the power station building at the project, with the eight Cummins HSK78G, 2 MW gas generator units in transit from the US with expected delivery to the KGP site in early February 2021.

Lastly, the KGP open-pit earthmoving contractor, MACA, has commenced mobilising mining equipment to site. Early preparatory works have commenced including haul road construction and limited waste mining mostly to provide materials for surface water bunds and tailings storage facility construction.

The first waste rock blast of material in the Bibra stage 1 pit has been fired successfully, Capricorn said.

Capricorn Metals secures gas power for Karlawinda gold project

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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.”