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Miner to build $40m solar power plant

Jul 15, 2015
An impression of part of the solar array to be built at the DeGrussa mine. Photo: Supplied by Sandfire

An impression of part of the solar array to be built at the DeGrussa mine. Photo: Supplied by Sandfire

Construction of a state-of-the-art solar power station at a copper mine in Western Australia will begin later in July.

Sandfire Resources says the $40 million project at the DeGrussa copper mine 900km northeast of Perth will be the largest integrated off-grid solar and battery storage facility in Australia.

The project, expected to be up and running in 2016, is receiving up to $15 million in funding from the Federal Government’s Clean Energy Finance Corporation (CEFC) and $20.9 million from the Australian Renewable Energy Agency.

In a statement to the Australian Stock Exchange today, Sandfire said the DeGrussa solar project was “expected to set new benchmarks for the use of renewable power for mining and processing operations”.

The company believed the project had the potential to become a world-leading reference site for the use of renewables in the mining industry to reduce costs and improve environmental performance.

The facility is expected to be fully operational in 2016.

The solar array will utilise more than 34,000 solar panels over 20 hectares, combined with 6mw of short-term battery storage.

“Once completed, it will be one of the world’s largest integrated solar installations providing peak load power to a mining operation,” Sandfire said in its statement.

The existing diesel power station at the DeGrussa mine. Photo: Supplied by Sandfire

The existing diesel power station at the DeGrussa mine. Photo: Supplied by Sandfire

The solar power station will also be fully integrated with an existing 19mw diesel-fired power station at the mine, which would continue to provide base-load power. Under an agreement with the owner of the diesel station, Kalgoorlie Power Systems, Sandfire will purchase the solar power generated at a fixed rate that is lower than the historical cost of diesel-generated power.

The company expects the resulting reduction in diesel fuel to reduce the mine’s carbon dioxide emissions by an estimated 12,000 tonnes per year.

“The project has the potential to reduce the mine’s diesel consumption and is consistent with our relentless focus on driving down costs,” said Sandfire managing director Karl Simich.

“At the same time, it will reduce our carbon footprint, make an important contribution towards achieving improved environmental outcomes and potentially help promote the use of renewable energy in the Australian mining industry.”

Investments by the CEFC became a heated political issue this week, with news that the Federal Government had directed it to not fund wind power or rooftop solar. However, the Government said that large-scaled solar projects would continue to be a focus of CEFC investment.

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– with AAP

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