Rame RNS today part 217 Oct 2014 08:58
Rame CEO Tim Adams commented: "The signing of the PPA confirms that Rame is able to provide attractively priced energy to both on and off grid customers and can do so even on comparatively short term contracts. Under the agreement, Rame will provide not just cheaper and cleaner power but also better energy security and reduced price volatility to the Cerro Bayo Mine. Our innovative approach to the selection of the generating equipment for this project demonstrates how Rame is engineering improved project economics and can deliver robust returns and accelerated capital paybacks. We see a range of good opportunities to apply our expertise in renewables to isolated off grid power systems and anticipate that our increasing presence in the growing 'diesel displacement' market will contribute significant income to the business as a whole."Further InformationRame will provide the power from its own wind farm with an installed capacity of up to 1.8MW, to be located, at no charge to Rame, on the Cerro Bayo property. Rame has been undertaking wind and feasibility studies at the site for the last 12 months and completed its initial technical analysis in Q2 2014, which led to a power supply proposal to Cerro Bayo and subsequently the agreement on terms for the PPA. It is expected that the wind farm will contribute approximately 6,250 MWh of electricity per year to the power supply of the mine (albeit that Rame does not guarantee any minimum power delivery) and the project will work in parallel with Cerro Bayo's existing diesel generating system, located a few hundred metres away from the proposed site for the turbines. The project requires no environmental permitting studies and Rame will carry out the entire construction of the project to minimise build costs and execution of risk.The Cerro Bayo gold and silver mine is located in Southern Chile, 130km south of Coyhaique, the capital of Region XI. It is owned by Mandalay Resources Limited which is listed on the TSX. Mining restarted in September 2010 and it produces c.1,400 tonnes of ore per day. No grid power is available at the site and to date power has been generated on site by diesel generators.
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