East Africa-focused Shanta Gold’s New Luika gold mine, in south-west Tanzania, has successfully connected to the State power grid .
The initial connection represents about 10% of the mine’s power needs and this is anticipated to increase over the next 12 to 24 months.
The cost of state grid power from Tanesco is about half that of self-generated power.
Power generation currently represents more than 25% of New Luika’s cash costs.
“Lowering New Luika's costs reduces the cut-off grade required for ounces to make it into the mine plan effectively reducing the hurdle for exploration success,” said CEO Eric Zurrin.
New Luika sources power from solar, grid electricity, and heavy-fuel oil, which has recently undergone a routine 12 000 hour rebuild of its engines refurbishing the gensets and ensuring longevity.