Tag Archives: Power generation

Zenith Energy helps Independence go solar at Nova nickel-copper operation

Base metals, Environmental, Mine operation news, Mining services, Power supply for mines, , , , , , , , ,

Independence Group’s Nova nickel operation is set to play host to Australia’s first fully-integrated commercial hybrid diesel/solar photovoltaic (PV) facility after the company signed a contract amendment with remote power generation specialist Zenith Energy.

The changes to the existing power purchase agreement, signed by Zenith and Independence back in 2015, will incorporate a solar PV facility with a forecast 12.5 GWh/y.

Zenith’s subsidiary, Zenith Pacific, will now build, own and operate a hybrid diesel/solar PV power station of around 26 MW in installed capacity to “reliably and efficiently service the power needs of the Nova operation”, the company said.

Zenith has made huge strides since becoming a public entity via the ASX in May, sealing contracts with the likes of Gascoyne Resources, for its Dalgaranga gold project, and Dacian Gold, for its recently opened Mt Morgans gold mine.

Managing Director of Zenith Energy, Hamish Moffat said: “This development represents the first fully integrated and commercial hybrid diesel/solar PV facility in Australia and is a step forward in future renewable energy solutions.”

The solar PV will include “state-of-the-art PV modules, single axis tracking, inverters, communications and control system technology”, Zenith said.

The hybrid power station will incorporate high efficiency diesel-fuelled generators and solar PV generation.

The integrated facility is expected to be completed within the first quarter of Zenith’s 2020 financial year (to end-June, 2020). The initial supply period is for six years with an option for Zenith to extend for a further two years.

Independence Group’s Managing Director, Peter Bradford said: “The development of this innovative hybrid energy solution will…improve our cost structure with targeted renewable power insertion of up to 50% of demand via the solar PV facility.”

Nova is in the Fraser Range of Western Australia, some 160 km east-northeast of Norseman. It produced 22,258 t of nickel and 9,545 t of copper in its first full year of operation in the 2018 financial year.

Golden FY2018 for power producer Zenith Energy

Mining services, Power supply for mines, Precious metals, ,

Australia-based independent power producer Zenith Energy has surpassed its own targets in its first full financial year as a listed entity, recording a net profit after tax of A$8.47 million ($6.28 million).

The company only listed in May, but, since debuting, has won contracts with Newmont Mining for its Tanami gold mine, Gascoyne Resources for its Dalgaranga gold project and Dacian Gold’s recently opened Mt Morgans gold mine.

This has seen the company more than double its Build Own Operate contracted capacity from 88 MW when it listed in Australia to 189 MW this month.

“Zenith currently has 12 contracts in place representing 420 MW of generation capacity under control, and a robust pipeline of remote power generation opportunities,” it said.

Revenue for its 2018 financial year to the end of June came in at A$51.43 million, up 64% on the previous year, while EBITDA of A$18.22 million was 85% ahead of FY2017.

The A$8.47 million in net profit was not only 171% up from its previous financial year, but was ahead of the A$3.52 million forecast Zenith guided in its listing prospectus last year.

Zenith says it specialises in tailored, reliable, cost-effective solutions using gas, diesel, solar and hybrid generation.

Its 10-year power purchase agreement with Newmont at Tanami will see Zenith build, own and operate a 62 MW power station comprising 52 MW of gas-fired generation and around 10 MW of diesel back-up power. It is due to begin in the March quarter of next year.

Zenith Managing Director Hamish Moffat said the company was setting itself a goal of converting a “significant portion” of its current 380 MW pipeline to contracted capacity, as well as exploring “early opportunities in renewable power, smart-grid and storage”.

Zenith, founded in 2006, also has contracts in place with Northern Star Resources (Kundana and Jundee), Pantoro (Halls Creek), Independence Group (Nova), Incitec Pivot (Phosphate Hill), Billabong Gold (Plutonic) and OK Tedi Mining.

Rio signs up three Chinese EPC contractors for Oyu Tolgoi power plan

Base metals, Coal technology, Environmental, Mine operation news, Mineral commodities, Mining services, Power supply for mines, Precious metals, , ,

Rio Tinto has entered into agreements with three Chinese EPC contractors that could potentially solve the company’s domestic power challenge at its majority-owned Oyu Tolgoi copper-gold operation in Mongolia.

The three state-owned contractors – China Machinery Engineering Corp, Harbin Electric International Co Ltd and Power Construction Corp of China – have been asked to submit a bid for the engineering, design and construction of a power station.

“The agreement entered into with each bidder provides that, where a bidder submits a conforming bid and it is not accepted by Oyu Tolgoi LLC, Oyu Tolgoi LLC will pay $500,000 to that bidder to offset the costs of preparing that bid and the early engineering and design work packs,” Rio, which has a 33.5% indirect ownership interest in the limited company, said.

In its June quarter results, released earlier this week, Rio said Oyu Tolgoi LLC was “progressing studies and preparations for suitable power solutions and continues to discuss the provision of domestic power with the Government of Mongolia”.

Earlier in the year, the Southern Region Power Sector Co-operation Agreement, under which Oyu Tolgoi was committed to working with the Government of Mongolia on a Tavan Tolgoi Independent Power Provider project, was cancelled.

The government gave the company four years, from February 2018, to find a domestic power supply for the operation.

Babylon powers up at BHP’s Mining Area C operation

Equipment maintenance, Mine operation news, Mineral commodities, Mineral processing, Mineral project development, Mining equipment, Mining services, Power supply for mines, Steel and iron ore,

Australia-listed Babylon Pump & Power is about to mobilise its power generation team to BHP’s Mining Area C iron ore operation in Western Australia after securing a contract through ADENCO Water Management & Civil Engineering.

Under the contract, Babylon will supply, install and maintain power generation equipment for the Surplus Water Pipeline project at Mining Area C. ADENCO was awarded a contract to supply all labour, plant, materials, transport, equipment, supervision and project management to complete the project and has contracted the power generation part out to Babylon.

Babylon’s work is due to start immediately, with commissioning scheduled for September.

The contract will run for a minimum term of 52 weeks and is expected to book Babylon some A$1.1 million in revenue in its 2019 financial year.

Babylon said: “The significant contract is an endorsement of the company’s strategy in positioning Babylon as a key provider of specialty equipment rental and resource equipment maintenance services.”

The scope of the Surplus Water Pipeline project, according to ADENCO (whose work is pictured above), includes the supply and site installation of the mechanical, electrical and civil works. The main components are:

  • 35km of HDPE pipe ranging from DN710 to DN315, with a significant proportion to be buried
  • Inpit and expit bore pumps, diesel generation sets and headworks, including two inpit, trailer-mounted dewatering units
  • Two new electrically-driven transfer pump stations and associated concrete/civil works
  • Two diesel-driven transfer pumps with solar powered control panels
  • Two large water storage tanks and associated concrete/civil works
  • A number of managed aquifer recharge bores with solar powered control panels
  • A range of HDPE and steel fittings and assemblies
  • All associated air release, isolation and non-return valves
  • Several detailed civil structures and below-ground works
  • All associated civil and concrete works, including land clearing, trenching, backfilling and compaction.

BHP is in the process of extending its Mining Area C through the development of the South Flank iron ore project.