Russian miner Nordgold (LON:NORD) said on Monday it would build a new power plant at its Lefa mine in Guinea as part of efforts to reduce its greenhouse gas emissions.
The gold producer, which acquired the mine in 2010, has
commissioned the construction of the new 33 MW power plant to manufacturing
service group SUMEC, a key member of China National Machinery Industry
Corporation (SINOMACH).
Nordgold, which spun off of Russian steelmaker Severstal in
2012, said the new heavy fuel oil facility would replace the existing
power plant. The move is expected to reduce both fuel consumption for
electricity production by 15% and engine oil by 30%, resulting in a reduction
of emissions of 17,000 tonnes per year.
“The power plant will enable a significant reduction in
operating costs, in addition to enhancing the stability of the electricity
supply for over 15 years of Lefa’s life of mine,” Nordgold said.
Design and construction of the facility is expected to cost
around $23 million, with completion slated for late 2021.
Lefa is one of the largest gold mines
in Guinea, employing almost 1,200 people directly, as well as providing
over 800 indirect jobs.
Last year, the company inked a deal with Total Eren, an
independent power producer specializing in renewable energies, and Africa
Energy Management Platform, its strategic development partner, to construct
a 13 MW solar photovoltaic power plant for its Bissa and Bouly gold mines in
Burkina Faso.
Nordgold, which acquired many of its major assets during the
2008-2009 financial crisis, also operates in Russia and Kazakhstan.