Energy consultant Rame Energy has signed a memorandum of understanding (MoU) to supply power to the Chilean Cerro Bayo mining project.
The Cerro Bayo gold and silver mine is located in Southern Chile, 130 kilometres south of Coyhaique.
The deal sets out the provision of power from a purpose-built wind farm with an installed capacity of up to 1.8MW for a minimum of five years from commencement of commercial operations, expected to start by April next year, and thereafter on a rolling one-year contract.
It is expected that the $4million wind farm will contribute approximately 6,250MWh of electricity per year to the power supply of the mine and the project will work in parallel with Cerro Bayo’s existing diesel generating system, located a few hundred metres away from the proposed site for the turbines.
“This MoU with Cerro Bayo will, when converted to a formal contract, mark another milestone in our move towards becoming an independent power producer (IPP) in our own right and we are delighted to now be progressing towards adding a clean, cost effective energy solution to the isolated diesel power generation at Cerro Bayo,” said Tim Adams, Rame Energy chief executive.
“This project is the first of a number of off-grid IPP opportunities in wind and solar power we expect to develop, using our previous off-grid experience and expertise.
“We will look to secure and execute additional power supply contracts in tandem with the rollout of our wind power projects in Chile, the first two of which are due to commence operations by the end of 2014.”