Tag Archives: heavy fuel oil

Aggreko to help power up Colluli potash project

Aggreko has been appointed as the preferred power supply contractor for the 12 MW heavy fuel oil (HFO) power plant at the Colluli potash project in Eritrea, Danakali has reported.

The power company will provide a full scope of support services for the supply, commissioning, and maintenance of the power plant, then transfer to the jointly-owned Colluli Mining Share Company (CMSC), under a five-year buy-own-operate-transfer (BOOT) contract. Aggreko will also provide the funding for the power solution, which provides certainty over delivery of this preferred solution, Danakali said.

The choice of the BOOT agreement is due to the equipment being available now and not needing to be built, Danakali, a 50:50 owner of CMSC along with the Eritrea government, said. This will also de-risk the development schedule, it added.

The costs of the power solution provided by Aggreko over the five-year contract period is lower than the front-end engineering design study results, according to Danakali.

Aggreko is funding the capital expenditure required for the power plant and all equipment will be transferred to CMSC at no extra cost at the end of the contract period, Danakali explained. This power solution is scalable and can increase/decrease according to CMSC’s needs, it added.

The agreement between Aggreko and CMSC is subject to the conclusion of ongoing negotiations to optimise the scope of works, contract pricing and execution; and board approval of the final investment decision for Colluli.

In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development.

Niels Wage, CEO of Danakali, said: “We are very pleased to announce the appointment of Aggreko as our single power provider. With 55 years of experience in delivering high-quality, reliable service to a large number of projects, we are confident they have the capabilities to provide our power needs for Colluli.

“At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by social and environmental impact assessment, Colluli will have a relatively small impact on the environment. Going forward, once project development is in more of a steady state, we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environmentally friendly solutions.”

John Lewis, Managing Director, Africa – Aggreko, added: “Our extensive experience in Eritrea and knowledge of the local market means that we are ideally placed to provide a solution which meets the specific needs of Danakali and deliver a reliable power supply for this project.”

Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite.

Aggreko stabilises power supply for Kinross at Tasiast gold mine

Aggreko has helped Kinross Gold shore up its power supply at the Tasiast gold mine in Mauritania, providing a turnkey heavy fuel oil (HFO) solution that has given the company time to review its longer-term energy needs.

The Tasiast mine is one of the largest open-pit gold mines in Africa, located in the remote north western region of Inchiri in Mauritiana.

As an off-grid mine it needed to have its own power supply and was being powered by a 25 MW HFO Wartsila power plant, with an additional 10 MW of diesel, both of which Kinross own, Aggreko said.

“The diesel technology was ageing, very inefficient and prone to regular breakdowns, which was incurring Kinross huge maintenance costs,” Aggreko explained.

Furthermore, the company had recently completed phase one of an expansion of the mine. This included the installation of a new SAG mill to increase the rock crushing capacity by 50% – from 8,000 t/d to 12,000 t/d – however, the power generation capacity had not been upgraded. This meant the redundancy available on site was significantly decreased once the mine expanded and heightened the risk of power failures.

The life of mine was expected to be at least another decade away in 2029 too, and, with the diesel price volatility impacting operations, Kinross needed to think about power for the mine over the longer term, as well as what it could do to alleviate the cost implications it was suffering, short term, Aggreko said.

It engaged Aggreko to explore the options.

To address the immediate issues, Aggreko offered a solution that was easy to integrate into the team’s current power mix, it said.

“Replacing the existing diesel plant with 13 MW of Aggreko’s HFO power meant we could reduce their reliance on diesel, and they could keep the old diesel sets as additional redundancy for emergencies,” the company said.

“We synchronised with their existing Wartsila HFO plant and integrated the systems smoothly with no interruptions to their operations – ultimately safeguarding production.”

With Aggreko providing a turnkey solution, the company didn’t need to worry about operating or maintaining this new plant, it said.

Delivering the plant on time was also crucial for Kinross, Aggreko said.

With eight months of planning, the contract was signed in June 2019. This requested Aggreko to deliver and commission the plant by the last day in November of the same year.

“Putting our deep experience of operating in Africa to use, specifically our knowledge of local importation and logistics challenges, we delivered the project not only on time, but also on budget,” Aggreko said.

Aggreko concluded: “Kinross have reliable, guaranteed power 24/7 to ensure their gold production is unaffected by power issues or further shutdowns, and it’s given them the breathing space and time to review longer-term power options for the remaining life of the mine.

“The solution we put in place to use HFO also made the fuel management easier using one fuel across both their existing Wartsila plant and the new plant, which was also more cost effective.”

Tasiast produced 391,097 ounces of gold equivalent in 2019, according to Kinross. For the second consecutive quarter, the mine achieved record quarterly production and a record average throughput rate of 16,100 t/d in the March quarter, as the mine continued to benefit from the phase one expansion.

The company is also in the middle of a phase stage expansion at the operation, which could see throughput capacity increase to 24,000 t/d by mid-2023.

Nordgold asks China’s SUMEC to power up Lefa gold mine

Nordgold Group is looking to reduce its greenhouse gas emissions with the construction of a new 33 MW power plant at its Lefa mine in Guinea.

The gold producer has signed an engineering, procurement and construction agreement with China manufacturing service group SUMEC, a key member of China National Machinery Industry Corporation (SINOMACH), to design and construct the plant.

The new heavy fuel oil facility will replace the existing power plant, in turn reducing both fuel consumption for electricity production by 15% and engine oil by 30%, according to Nordgold. This will result in a 17,000 t/y reduction of greenhouse gas emissions, the company said, which is in line with Nordgold’s climate change objectives as well as its commitments to the United Nations Sustainable Development Goals.

Hyundai Heavy Industries, the world’s largest shipbuilding company and leading manufacture of heavy industry machinery, is providing the power plant’s main generating equipment.

Nordgold said: “The power plant will enable a significant reduction in operating costs, in addition to enhancing the stability of the electricity supply for over 15 years of Lefa’s life of mine. Moreover, the installation of the latest fire detection systems will increase employee safety.”

The design and construction of the project is expected to cost around $23 million, with the power plant expected to be completed by the end of 2021.

During construction, hundreds of additional jobs will be created and essential construction materials including sand, cement, gravel amongst others will be sourced locally from Guinean suppliers, according to Nordgold.

Nikolai Zelenski, CEO of Nordgold, said: “Even during these challenging times, we remain committed to investing in Guinea. The new power plant is an important investment as it enables us to both decrease greenhouse gas emissions and provide sustainable power generation for our Lefa mine. We are looking forward to working with SUMEC and Hyundai to achieve this project.”

Nordgold acquired the Lefa mine in 2010, with annual gold output almost trebling since, according to the company. The mine, a conventional modern open-pit operation with three major mining areas and several smaller, higher grade satellite pits providing additional ore feed for the mill, produced 189,800 oz of gold in 2019.

Last year, Nord Gold the company did its climate change objectives no harm after entering into an exclusive agreement with Total Eren, an independent power producer specialised in renewable energies, and Africa Energy Management Platform, its strategic development partner, to construct a 13 MW solar photovoltaic power plant for its Bissa and Bouly gold mines in Burkina Faso.

Solar hybrid power plant pays off for B2Gold at Otjikoto in Namibia

B2Gold has provided an update on the solar power plant working at its Otjikoto gold mine, in Namibia, in its 2018 financial results, confirming that the installation is making savings when it comes to heavy fuel oil (HFO) use and power generation costs.

On May 29, the company celebrated the official opening of the solar plant, one of the first fully-autonomous hybrid plants in the world.

At the time, B2Gold said it would allow the company to significantly reduce fuel consumption and greenhouse gas emissions from the site’s current 24 MW HFO power plant. The shift to an HFO solar hybrid plant was, at that point, expected to reduce Otjikoto’s HFO consumption by approximately 2.3 million litres and reduce associated power generation fuel costs by approximately 10% in 2018.

B2Gold selected Caterpillar and Cat® dealer Barloworld for the 7 MW solar power solution. The full system included Cat photovoltaic solar modules and the Cat microgrid master controller.

In the company’s 2018 results, B2Gold said the plant was now providing approximately 13% of the electricity consumed on site.

And, the plant had also achieved its expected HFO consumption and power generation fuel cost results: “Changing the power plant to an HFO solar hybrid plant reduced Otjikoto’s HFO consumption by approximately 2.4 million litres and reduced associated power generation fuel costs by approximately 10% in 2018,” B2Gold said.