Kalgoorlie Power Systems wins contract expansion at Tropicana gold mine

Tropicana mine manager Richard McLeod and mine geology manager Brad Catto. Image: Aaron Bunch.

AngloGold Ashanti has awarded Kalgoorlie Power Systems with a contract expansion to increase power capacity for its Tropicana underground development in Western Australia.

The contract can expand Tropicana’s gas fuelled power station up to six megawatt under both companies’ existing contract for the $105.7 million Boston Shaker underground project.

Kalgoorlie Power and AngloGold have a standing contract until 2028, with options to extend by up to five years.

The Pacific Energy subsidiary will commission an initial four megawatt by the end of the year, with a further two megawatt to be installed at AngloGold’s option. This would take Tropicana’s power station to 50 megawatt capacity.

Tropicana is 70 per cent owned and managed by AngloGold, with Independence Group holding the remaining 30 per cent share.

Boston Shaker is scheduled to pour first gold in the September quarter next year. The underground development is expected to contribute 100,000 ounces a year to Tropicana’s production profile from the 2021 financial year.

Kalgoorlie Power is also on target to commission 11 megawatt of new capacity by July 2019, including six megawatt expansion being undertaken for gold miner St Barbara and the soon-to-be commissioned five megawatt Juardi power station.

Pacific Energy signalled Tropicana was not the only contract expansion the company was expecting, saying, “[Pacific Energy]’s Contract Power subsidiary as well as Kalgoorlie Power Systems are both currently in discussion” with several customers regarding other “likely” contract expansions.

Each subsidiary awaits the results of several tenders for new power stations.

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