ASX-listed Resolute Mining has signed a joint development agreement with power project financier, developer and operator Ignite Energy Projects for the development of a 40 MW independent solar hybrid power plant at its Syama gold mine, in Mali.
The power plant, which will be operational by the end of 2020, will combine solar, battery and heavy fuel oil technologies and will replace the existing 28 MW diesel-fired power station at the mine.
Ignite will design, fund, build, own and operate the power plant and will supply power to Resolute on a guaranteed basis, subject to a maximum tariff over a term of 12 to 20 years.
Once built, the project is expected to be the world's largest offgrid, fully integrated hybrid power plant for a standalone mining operation.
Resolute expects the solar hybrid power solution to reduce its energy costs at Syama by 40%, as well as lower the mine's carbon emissions.
"The project is consistent with our ongoing efforts to use innovation and technology to optimise and enhance our Syama operations and deliver exceptional outcomes for our shareholders.
"The project is a key component of delivering the expected sub-$750/oz all-in sustaining cost for the Syama underground gold mine," Resolute CEO and MD John Welborn commented in a statement issued on Monday.