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Pacific Energy brings electricity to Round Oak copper mine in $2.5M deal

Industrial
ASX:PEA      MCAP $460.7M
18 July 2019 23:58 (AEST)

Image sourced ShutterStock

Pacific Energy has signed a new contract with explorer Round Oak Minerals to supply electricity to Jaguar copper zinc mine.

Pacific Energy subsidiary KPS Australia will acquire the existing 12.9MW power station for $2.5 million.

The acquisition and contract commencement is expected to be completed in August and KPS will have immediate responsibility of the power station.

The power station is now contracted to a capacity of 367MW meaning more power at the mine.

Within five months, KPS will have to complete a range of work that Round Oak wants to be improved. This includes fuel efficiency, optimising control systems and reaching higher KPI’s (key performance indicator) for station reliability.

The contract will run for four years but Round Oak will have an option to extend for a further term.

The Jaguar mine is approximately 250 kilometres north of Kalgoorlie in Western Australia and was brought into production in 2007. Round Oak purchased the mine and power station in 2018.

Round Oak minerals is a base metals and precious metals producer to several Australian based mining and processing operations.

Pacific Energy is an energy supply business that deliver low-cost ‘off-grid’ power supply to the Australian resource sector.

Pacific Managing Director, James Cullen is happy with the contract.

“We are grateful for the confidence that Round Oak has placed in KPS to take over full responsibility for power supply to the Jaguar site,” he said.

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