Tag Archives: Zenith Energy

Adaman’s Kirklalocka gold project to be powered by LNG

Adaman Resources’ owned Kirkalocka gold project, in Western Australia, is set to be powered by LNG after the asset owner and EVOL LNG signed a agreement.

The long-term arrangement, between EVOL and Adaman Resources’ wholly-owned subsidiary Kirkalocka Gold SPV Pty Ltd, will see EVOL LNG fuel Zenith Energy’s 14.5 MW power station, with supply planned to commence from September 2019.

The gold mine, around 70 km south of Mt Magnet in the mid-west region of Western Australia, is set to restart operation after more than a decade, with the mine’s new owners refurbishing the processing plant and increasing its capacity to over 2.2 Mt/y.

EVOL LNG and Wholesale Manager, Nick Rea, said the use of LNG as an alternative to diesel will help minimise the mine’s carbon emissions.

“LNG produces 25% less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50,000 t of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3,000 cars off the road,” Rea said.

EVOL, part of Wesfarmers Chemicals, Energy & Fertilisers, will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine, it said. “The facility will use EVOL LNG’s modular design which allows for fast installation and expandability to suit the mine’s growing energy requirements,” the company added.

Adaman Resources’ Chief Executive Officer, Craig Bradshaw, said EVOL LNG will provide environmental, financial and economic benefits for the company.

“Utilising LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than A$13 million ($9 million) during the first six years of operation,” he said.

EVOL’s Rea said Kirkalocka was the company’s third major contract in the mid-west in recent years; he sees huge potential for growth in this region.

“The scarcity of gas pipelines and absence of grid power would otherwise force off-grid mines to use diesel for power generation, but we are able to provide a much better solution with LNG. It’s clean, safe, reliable and lower cost than diesel.

“We have proven ourselves to the mining industry over the last decade, with seven mine sites now powered by EVOL LNG,” he said.

Newmont powers up at Tanami gold mine in Australia

Newmont Mining says it has completed the Tanami power project, in the Northern Territory of Australia, safely and on schedule.

The project included the installation of two power stations, a 66 kV interconnected power line, and a 450 km natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy. Capital costs are estimated at approximately $245 million with annual cash lease payments over a 10-year term beginning in 2019.

The successfully completed project is expected to provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emission by 20%, Newmont said. The project is expected to generate net cash savings of $34/oz from 2019 to 2023, delivering an internal rate of return of greater than 50%.

Newmont Chief Executive Officer, Gary Goldberg, said: “In addition to lowering costs and carbon emissions, the completed Tanami power project will pave the way to further extend the life of the operation.

“Consistent execution and delivery remain the hallmark of our ability to generate free cash flow and create long-term value for our shareholders and other stakeholders. Completion of the project coincides with Tanami pouring its 10 millionth ounce of gold on the back of record production of 500,000 oz last year. This achievement is a testament to the skill of our team as well as our valued partnership with the Walpiri people, the Traditional Owners of the land.”

Tanami is Australia’s second largest underground gold mine and one of the most cost competitive gold producers in the world, according to Newmont. Newmont’s continued exploration work at Tanami has created the potential to extend mine life beyond 2028, with additional upside through a possible second expansion project the company expects to make a full funding decision on in the second half of 2019. Last year, more than 800,000 oz of gold resources were converted into reserves from Tanami’s Auron orebody.

Diesel power up and running at Tanami gold project, Zenith Energy says

Zenith Energy says it has achieved completion on the diesel portion of its 62 MW power station for Newmont Mining’s Tanami gold mine in the Northern Territory of Australia.

The remote power generation specialist said it had energised the 42 km 66 kV interconnect between the Dead Bullock Soak and Granites sites, enabling transmission of power for the site in line with previous estimates.

The agreement between Zenith and Newmont – a build, own and operate (BOO) contract for a 62 MW power station at the mine – is the largest such power purchase agreement Zenith has signed to date. It is for an initial 10-year term, with an option to extend the contract for a further 10 years.

“Zenith is also delighted to confirm that the supply commencement milestone of Q1 2019 has been successfully achieved, with numerous complex design, engineering, logistics and construction challenges met and overcome, resulting in the on‐time, on‐budget and safe completion of this landmark project by Zenith’s world‐class team,” Zenith said.

The power station comprises 52 MW of gas‐fired and circa 10 MW of diesel (back‐up) power generation. Zenith said: “To put the scale of the power station in perspective, the average Australian household consumes circa 25 kWh/d of power, whereas the Tanami facility will produce upwards of 864,000 kWh/d.”

With the completion of this facility, Zenith has 428 MW of total generation capacity under control.

The design and construction phase for Tanami required the transport of three 150‐t Wartsila 34DF generators by road train from Fremantle in Western Australia; a 3,000 km journey (pictured) taking more than one week to complete, according to Zenith.

Managing Director of Zenith Energy, Hamish Moffat, said: “The construction of our 62 MW power station at Tanami, on time and within budget, is testament to the capability and commitment of the entire Zenith Energy team. As the largest BOO hybrid gas‐diesel project we have undertaken, completion of the Tanami power station is a major milestone for Zenith.

“Diesel-fuelled electricity supply from the facility has commenced and gas supply is imminent. We look forward to delivering cost‐effective, reliable power to Newmont’s Tanami operation for years to come.”

Newmont’s Tanami underground gold mine produced 419,000 oz of gold (attributable to Newmont) in 2017.

Zenith to supply more power to NSR’s Jundee gold mine

Zenith Energy has executed an amendment to the power purchase agreement (PPA) it had in place with Northern Star Resources for the Jundee gold mine in Western Australia.

The new pact will see Zenith add another 6 MW of installed capacity in the power station at Jundee and bring the ASX-listed power company’s overall build own operate (BOO) capacity to more than 189 MW.

Under the amend terms of the PPA, Zenith will BOO an expanded 24 MW power station for Jundee, located in the northern Greenfields region of WA. The power station will comprise an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The amended PPA is expected to have a supply commencement date of the March quarter and a 10-year term aligned with the existing PPA.

Zenith Energy’s Managing Director, Hamish Moffat said: “We are delighted to sign this PPA amendment with Northern Star, which further demonstrates Zenith Energy’s ability to build strong, long-lasting relationships with Tier One clients such as Northern Star Resources through the continued delivery of excellence in safe, innovative, reliable, highly efficient and cost-effective power generation solutions to support the diverse needs of our resources clients in demanding remote locations.”

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.35 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process achieving 92% recoveries.

The company produced 285,000 oz of gold in its last financial year from Jundee.

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

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

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.