Meekatharra Archives - International Mining

Westgold Resources, in line with its ongoing objectives to enhance profitability and focus on cost optimisation, has executed a new Electricity Purchase Agreement with independent power provider Pacific Energy and a new LNG Supply Agreement with Clean Energy Fuels Australia (CEFA).

These agreements will deliver substantial operating cost savings to Westgold in its 2023-2024 financial years onwards of around A$100/oz ($68/oz) at the current diesel price and supports its commitment to environmental, social and governance (ESG) initiatives that will reduce the company’s long term greenhouse gas emissions, it said.

Under the build-own-operate agreement with Pacific Energy, Westgold will materially reduce diesel consumption by replacing six diesel-fired power stations (two owned and operated by Pacific Energy) with four new, highly efficient gas-fired power stations to incorporate renewable energy options and use solar power and battery storage across the Bryah and Murchison Operations. Critically for Westgold, this transition to a mixed generation platform includes renewables and gas and is expected to reduce carbon emissions from diesel-powered generators by over 57%, due to the higher integration of renewables (34% solar) and cleaner fuel (gas versus diesel), the company said.

Westgold’s first new Pacific Energy power station will be commissioned in July 2023 at the Tuckabianna processing hub, with the three additional new power plants scheduled for commissioning from September 2023.

Westgold has concurrently signed a bulk LNG supply agreement with CEFA. CEFA will supply Westgold from its expanded LNG plant located at Mt Magnet (pictured), 80 km south of Cue. This plant is currently providing LNG to another Pacific Energy power plant in the Murchison region and provides a substantial advantage due to its proximity to Westgold’s operations. CEFA will fund and construct satellite LNG facilities (primarily comprising LNG storage and re-gasification equipment) at Westgold’s project sites, with the LNG trucked direct from its plant at Mt Magnet.

The new gas and solar power station to be commissioned at Westgold’s Meekatharra operations will also serve to simplify power generation by removing smaller diesel fired power stations at the Paddy’s Flat and Bluebird underground mines and providing them power from a larger gas-fired power station via overhead powerlines, according to the company.

Westgold Managing Director, Wayne Bramwell, said: “The transition to a cleaner, more efficient energy platform that utilises renewables and gas in financial year 2023 is strategic for Westgold. It is an important step in meeting our ESG targets but is pivotal to reducing the operating cost of our business.

“Westgold has selected two industry leaders in Pacific Energy and CEFA to work with us in this transition and we look forward to seeing the benefits that integrating renewable power and cleaner energy alternatives can deliver to our business and the communities within which we work.”

Australian Vanadium Ltd and Westgold Resources have signed a co-operation agreement that could see surplus water from operations at the Meekatharra asset used at the Australian Vanadium project in Western Australia.

Westgold’s Meekatharra operations comprise several active and inactive mines south of Meekatharra, 25 km to the west of the Australian Vanadium project, with continuous inflows into a number of these active and inactive pits and underground mines leading to the generation of significant amounts of surplus water. This water can be utilised in processing Australian Vanadium’s vanadium ore, the Australian Vanadium said.

In addition to the water access, the agreement provides a platform for “friendly collaboration” over access and the use of new and existing roads to move ore, materials and products within the companies’ tenements, Australian Vanadium added.

The Australian Vanadium project is currently one of the highest-grade vanadium projects being advanced globally, according to the company, with 208.2 Mt at 0.74% V₂O₅, containing a high-grade zone of 87.9 Mt at 1.06% V₂O₅ reported in compliance with the JORC Code 2012.

A December 2018 prefeasibility study laid out plans for an open-pit operation, with a crushing, milling and beneficiation plant, and refining plant for final conversion and sale of high-quality vanadium pentoxide.

Vincent Algar, Australian Vanadium’s Managing Director, said securing access to sufficient quality water resources to use in the mining and beneficiation process was one of the company’s highest priorities. “Access to excess water flowing into Westgold’s pits allows us to progress the project with increasing confidence,” he added.

“Western Australia has limited high-quality water resources, so innovative collaborations such as this agreement with Westgold can assist both the EPA (Environmental Protection Authority) and DWER (Department of Water and Environmental Regulation) with their water management and environmental custodianship, whilst allowing this critical project to progress.”

The key terms of the agreement are:

Westgold will not object to AVL’s proposed Miscellaneous Licence applications to enable Australian Vanadium to access, extract and establish infrastructure for pumping and relocation of water from one of the Reedy’s location open pits to the company’s desired location;
Any works will be undertaken at AVL’s cost and risk;
Access to Westgold and Australian Vanadium’s access roads will be permitted on a reciprocal basis;
Co-operation will be undertaken in good faith and in a timely manner;
A formal access agreement to secure Australian Vanadium’s Miscellaneous Licences and associated pumping infrastructure can be established, if required; and
The letter of agreement is set to progress to a formal agreement within three years, otherwise the agreement expires.

Westgold signs gas and renewables agreements with Pacific Energy, CEFA

Westgold helps Australian Vanadium with water, road access in WA