Macarthur Minerals (ASX: MIO) is aiming to achieve from 40% to 90% renewable stationary energy for its Lake Giles Iron Project, following a detailed analysis by energy transition specialists VECKTA.
The analysis, which forms part of the Lake Giles feasibility study, may see the company establish itself as one of only a handful of Australian miners to achieve such a substantial percentage of decarbonised energy inputs for stationary consumption.
“The opportunity to look at ways to economically reduce power costs alongside the implementation of a socially responsible and sustainable energy solution is exciting”
Importantly, if Macarthur is able to achieve 90% renewable from commencement of operations, it would represent a first for the Australian mining industry.
Speaking on the analysis, Macarthur Minerals CEO Andrew Bruton said: “The cost of power for the magnetite process plant at Lake Giles will be one of the most significant factors in determining the overall operating costs for the project. The opportunity to look at ways to economically reduce power costs alongside the implementation of a socially responsible and sustainable energy solution, by integrating renewable energy into our planned operations at Lake Giles from ‘day 1’ is exciting.”
The optimised power configuration would be made up of a combination of solar and wind power, supplemented by natural gas generators. The company notes that the configurations would provide a material reduction in levelised cost of energy compared to using diesel or natural gas as the project’s primary fuel source.
The company reports that it plans to access VECKTA’s capital market platform to fund the power station, with a contract structure designed to deliver competitive opex over the life of the mine.