Its Australian unit enters into an agreement with Pacific Energy to construct and operate 62MW of wind and solar generation capacity
26 June 2023 - 14:38
by Andries Mahlangu
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AngloGold Ashanti is to build one of the largest renewable energy projects in Australia as part of a wider plan to cut Scope 1 and 2 greenhouse gas emissions by 30% by 2030.
Its Australian subsidiary has entered into an agreement with Pacific Energy to construct and operate 62MW of wind and solar generation capacity, which will supply additional power to its Tropicana gold mine.
“We have a responsibility to proactively identify and address current and future climate-related threats,” CEO Alberto Calderon said in a statement on Monday.
“This renewables project at Tropicana is another important step forward for us, not only in realising our overall climate objectives, but also improving our overall security of energy supply and significantly reducing the site’s natural gas consumption.”
AngloGold’s plans align with the Paris Agreement, a legally binding international treaty on climate change whose goal is to limit the increase in global warming to below 2ºC to mitigate climate-related disasters.
Scope 1 refers to emissions from within the mine site, while scope 2 covers indirect emissions through the purchase of electricity from third-party providers.
Last October the gold producer unveiled a plan to cut environmentally damaging emissions through a combination of renewable energy projects and initiatives which improve efficiency or use lower-emission power sources.
Tropicana’s hybrid wind and solar with battery storage facility will be the first of its kind to be implemented by the company and will reduce the average carbon emissions by more than 65,000 tonnes per annum over the 10-year life of the agreement, making a significant contribution towards AngloGold’s climate commitments.
Pacific Energy will construct the renewables project and continue to operate the combined renewables-gas power station under a 10-year power purchase agreement.
The capital cost of constructing the renewables infrastructure will be incorporated into the ongoing power costs charged to AngloGold and its strategic partner Regis Resources, which jointly own Tropicana mine.
The Tropicana renewable energy solution will be integrated into the existing 54MW gas-fired power station at the mine, under a 10-year build-own-operate agreement.
A 14MW battery storage system will underpin the wind and solar renewable energy generation, which together will deliver an expected 50% reduction in overall natural gas consumption, AngloGold said. This currently represents the largest off-grid gas-wind-solar with battery stage facility in the Australian resources sector.
The project is due for completion in early 2025, with on-site construction expected to start in the second half of this year.
Pacific Energy, which owns and operates the existing gas-fired power station at Tropicana, is one of Australia’s leading producers of sustainable distributed energy.
AngloGold Ashanti said in May it would move its primary listing to the US which the gold producer hopes will close the market valuation gap between itself and larger rivals in North America such as Newmont and Barrick Gold.
The relocation of its primary listing to New York from the JSE confirmed the long-held market speculation after AngloGold sold its remaining Mponeng mine to Harmony Gold in 2020, ending an era with SA that dates back more than a century when it was part of the Anglo American stable.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
AngloGold’s carbon-reduction strategy gathers momentum
Its Australian unit enters into an agreement with Pacific Energy to construct and operate 62MW of wind and solar generation capacity
AngloGold Ashanti is to build one of the largest renewable energy projects in Australia as part of a wider plan to cut Scope 1 and 2 greenhouse gas emissions by 30% by 2030.
Its Australian subsidiary has entered into an agreement with Pacific Energy to construct and operate 62MW of wind and solar generation capacity, which will supply additional power to its Tropicana gold mine.
“We have a responsibility to proactively identify and address current and future climate-related threats,” CEO Alberto Calderon said in a statement on Monday.
“This renewables project at Tropicana is another important step forward for us, not only in realising our overall climate objectives, but also improving our overall security of energy supply and significantly reducing the site’s natural gas consumption.”
AngloGold’s plans align with the Paris Agreement, a legally binding international treaty on climate change whose goal is to limit the increase in global warming to below 2ºC to mitigate climate-related disasters.
Scope 1 refers to emissions from within the mine site, while scope 2 covers indirect emissions through the purchase of electricity from third-party providers.
Last October the gold producer unveiled a plan to cut environmentally damaging emissions through a combination of renewable energy projects and initiatives which improve efficiency or use lower-emission power sources.
Tropicana’s hybrid wind and solar with battery storage facility will be the first of its kind to be implemented by the company and will reduce the average carbon emissions by more than 65,000 tonnes per annum over the 10-year life of the agreement, making a significant contribution towards AngloGold’s climate commitments.
Pacific Energy will construct the renewables project and continue to operate the combined renewables-gas power station under a 10-year power purchase agreement.
The capital cost of constructing the renewables infrastructure will be incorporated into the ongoing power costs charged to AngloGold and its strategic partner Regis Resources, which jointly own Tropicana mine.
The Tropicana renewable energy solution will be integrated into the existing 54MW gas-fired power station at the mine, under a 10-year build-own-operate agreement.
A 14MW battery storage system will underpin the wind and solar renewable energy generation, which together will deliver an expected 50% reduction in overall natural gas consumption, AngloGold said. This currently represents the largest off-grid gas-wind-solar with battery stage facility in the Australian resources sector.
The project is due for completion in early 2025, with on-site construction expected to start in the second half of this year.
Pacific Energy, which owns and operates the existing gas-fired power station at Tropicana, is one of Australia’s leading producers of sustainable distributed energy.
AngloGold Ashanti said in May it would move its primary listing to the US which the gold producer hopes will close the market valuation gap between itself and larger rivals in North America such as Newmont and Barrick Gold.
The relocation of its primary listing to New York from the JSE confirmed the long-held market speculation after AngloGold sold its remaining Mponeng mine to Harmony Gold in 2020, ending an era with SA that dates back more than a century when it was part of the Anglo American stable.
mahlangua@businesslive.co.za
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