(Alliance News) - Centamin PLC on Thursday said developments at its Sukari project have created further opportunities for cost reduction, as the mine's solar plant delivers savings ahead of expectations.
Centamin is a London-based gold producer with interests in Egypt, Burkina Faso and Ivory Coast. The Sukari gold mine is its flagship project, and Egypt's first large-scale modern mine, with a workforce of around 3,795 people.
In its update on Thursday, Centamin said full commissioning of the solar plant could lead to annual cost savings of USD20.0 million, based on current diesel prices.
The company found that the plant reduced its exposure to volatile fuel pricing, saving up to 70,000 litres of diesel per day, and an average of 22.0 million litres per year.
Looking ahead, Centamin expects the plant to reduce its scope 1 greenhouse gas emissions by 60,000 tonnes of carbon dioxide equivalent per annum.
The company also said it had received initial proposals from the Egyptian government and independent power providers to supply 30 to 50 megawatt alternating current units of grid power to Sukari.
Grid power supply at the higher end of the spectrum would make it possible to stop using diesel power completely at the mine, which is located near the Red Sea coast below Luxor with the Egyptian grid in close proximity.
The Egyptian power grid is generated from natural gas and a mix of renewables, and could if used further reduced Sukari's greenhouse gas emissions. Egyptian industrial grid tariffs also are significantly cheaper than the cost of power generation using diesel fuel.
Centamin expects full commissioning of the Sukari solar panel by the fourth quarter of 2022.
"The solar plant and potential to integrate grid power will contribute materially to our environmental stewardship philosophy and our strategic objective of maximising returns for all stakeholders," said chief executive officer Martin Horgan.
Centamin shares were trading 0.8% higher at 84.26 pence each in London on Thursday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Centamin PLC (CEY)