Precious and base metals explorer and developer West Wits Mining (ASX:WWI) has received approval from South Africa’s Joburg City Power for a 7.5MVA power supply to the Witwatersrand Basin Project’s phase one Qala Shallows.
The company expects the use of Joburg City Power’s power supply will lead to ‘significant’ cost savings for West Wits, estimating a cost reduction of 75% compared to using diesel power generators.
Commenting on the approval, West Wits Mining Chief Executive Officer (CEO) and Managing Director, Jac van Heerden says: “The 7.5MVA bulk power supply approval for the Qala Shallows Project is a significant milestone. Joburg City Power’s supply is estimated to be approximately 75% cheaper than using diesel power generators.
“Diesel power generators will remain an integral part of Qala Shallows’ power supply system, ensuring uninterrupted production during load shedding periods and other outages”
Diesel power generators will remain an integral part of Qala Shallows’ power supply system, ensuring uninterrupted production during load shedding periods and other outages. However, access to grid power for the majority of operations will significantly reduce the projected electricity costs during the build-up phase and thereby further de-risk the project at a critical phase.
In addition, West Wits has engaged with renewable energy suppliers to further reduce the reliance on diesel and mitigate the impact of higher electricity costs; this will ultimately enable the operation to achieve power security at the lowest power cost possible.”
The Witwatersrand Basin Project is in the Central Rand Goldfield in South Africa and boasts a 4.28 million ounce gold project @ 4.58g/t. The company says recent media attention has focused on South Africa’s national power suppliers’ capacity to provide adequate power infrastructure to the country.
However, the company notes that over the last 3 years South Africa has had sufficient power generation for about 18 to 22 hours per day at a ‘significantly’ lower cost than utilising diesel power generation, which is typical for mines located in remote areas. As a result, early access to grid power will mean ‘significant’ cost savings as reliance on diesel power reduces during the build-up phase.
West Wits reports its updated Definitive Feasibility Study (DFS) results assumed a total reliance on diesel power generation during the initial 15-month build up period, pending approval and connection to the grid. With the approval of a 7.5MVA power supply this time will now be reduced by 6 months or longer.
The company also notes the ‘significant’ advances made in renewable power over the past few years and is currently reviewing various options looking at solar power infrastructure, as well as battery operated mining equipment. West Wits says that South Africa has an ideal climate to maximise the use of solar energy.
Additionally, the company’s preferred mining equipment supplier has made ‘significant’ strides in the development of battery-operated mining equipment which provides the potential to reduce the company’s reliance on diesel power.
To ensure safe and profitable mining operations, West Wits envisions an ‘optimal’ power supply for its Witwatersrand Basin Project that combines electrical grid, solar, and diesel power. This approach will enable the mine to maintain uninterrupted production.
West Wits Mining is a precious and base metals exploration and development company focused on its Witwatersrand Basin Project in South Africa. According to the company, the project boasts the world’s ‘largest’ known gold reserves with 4.28 million ounces, and it has produced over 1.5 billion ounces which represents 22% of all gold accounted for above the surface.
Images: West Wits Mining Limited
