Join our daily newsletter At The Bell to receive exclusive market insights
- Boab Metals (BML) enters a deal for the supply of electricity to the Sorby Hills lead-silver-zinc project in the Kimberley region of Western Australia
- Boab entered a heads of agreement with Horizon Power, which will see the energy provider supply cleaner and cheaper electricity over a ten-year term
- While the majority of power over the project’s life is expected to be sourced from the hydro plant, a diesel power plant will continue to provide back-up power
- The terms and conditions of agreement will remain non-binding until both parties have finalised their negotiations
- Boab Metals last traded at 45.5 cents at 10:40 am AEST
Boab Metals (BML) has entered a deal for the supply of electricity to the Sorby Hills lead-silver-zinc project in the Kimberley region of Western Australia.
Boab entered a heads of agreement with Horizon Power for a future power purchase agreement. The deal will see Horizon Power supply cleaner and cheaper power for Boab’s 75 per cent owned project over a ten-year term.
The project is currently powered using electricity from the nearby townships of Kununurra and Wyndham via Horizon Power’s East Kimberley transmission network.
Through the new agreement, power will be sourced from the Ord River hydroelectric plant, with a diesel plant also on site to provide 100 per cent power back-up.
Whilst the majority of electricity over the project’s life is expected to be sourced from the hydro plant, the diesel power plant will continue to provide back-up power for up to 100 per cent of the required demand, should the plant be unable to meet Sorby Hills’ full requirement at any point in time.
Boab Managing Director and CEO Simon Noon said the agreement represents the culmination of ongoing technical and commercial discussions between Boab and Horizon Power over the past 12 months.
“We are extremely excited by the prospect of incorporating a one-stop solution that simultaneously provides secure power, positive environmental outcomes and economic benefit to the Sorby Hills Project,” Mr Noon said.
“We are committed to working closely with Horizon Power to finalise a formal power purchase agreement ahead of a decision to mine at Sorby Hills in mid-2022.”
The terms and conditions of agreement will remain non-binding until both parties have finalised their negotiations.
Boab Metals last traded at 45.5 cents at 10:40 am AEDT.
-1200x645-380x200.jpg)
