JOHANNESBURG (miningweekly.com) – The construction of a 7.5 MW power station at the New Luika gold mine has received a shot in the arm as Aim-listed Shanta Gold secured $9.1-million financing from Bank M Tanzania.
The new power plant, the delivery of which was expected in the first quarter of 2017, just prior to the start of underground production in the second quarter, would provide the mine with a longer-term power facility to cater for an extended mine life.
"This power station project is a cornerstone capital item for the successful realisation of our mine plan for the New Luika gold mine. The transition from a power leasing arrangement to an owned power station has compelling strategic and financial benefits including a significant drop in per kilowatt-hour power costs,” CEO Toby Bradbury said in a statement on Wednesday.
New Luika’s power demand was forecast to double to around 6 MW during development and operation of the underground mine.
The East Africa-focused gold producer, developer and explorer said Inglett & Stubbs International would supply, operate and maintain the power station.