AfriTin Mining reaches power supply agreement for Uis Mine

(Sharecast News) - Namibia and South Africa-focussed mining company AfriTin Mining announced the conclusion of an electrical power supply agreement for its mining and processing facility at the Uis Mine on Wednesday, as part of the first phase pilot plant project.The AIM-traded firm said it had concluded a formal supply agreement for electrical grid power with state-owned utility, Namibia Power Corporation (Nampower).It said the agreement would provide for the full on-site power requirements for the first phase mining and processing facility, and would be "significantly" more cost effective than diesel generated power.The salient terms of the agreement included a supply voltage of 66kV, supply capacity of 1.5MVA, an agreement period of 10 years, and pricing according to Nampower's schedule of standard prices for transmission customers.Diesel generators were now in place at site to provide power to the processing plant during the commissioning phase, the company explained.However, once grid power had been connected, the diesel generators would serve as backup power.The electrical power would be provided from the existing high-voltage supply line that currently terminated around one kilometre from the plant processing site.It was projected that the construction of an 800-metre power line and substation required for the grid power connection would be undertaken, and was aimed to coincide with the anticipated production ramp-up of the processing plant."The conclusion of the power supply agreement is an important step in the progression of the Uis tin mine," said AfriTin chief executive officer Anthony Viljoen."This agreement will provide reliable energy to site, improve the planned cost structure and further support the economic viability of our project."