New Century Resources will receive seven petajoules (PJ) of natural gas over the next three years from Australian energy company Senex to support the mining company’s zinc production.
The natural gas will be supplied to APA Group’s Diamantina Power Station in Mount Isa, generating the power required to operate the Century mine located approximately 250 kilometres north-west of Mount Isa.
Commencing in January, the three-year agreement will see Senex provide its seven PJs of natural gas at a fixed price, in line with current market levels.
As New Century looks to increase its production levels associated with the potential development of existing deposits at the Century Mine, Senex will further supply around one PJ of additional natural gas at New Century’s request by mid-2022.
Senex managing director and chief executive officer Ian Davies said the company was proud to establish ties with such a strong Queensland customer.
“Century mine generates significant state royalties and export earnings, and is a critical project in the Queensland Government’s strategic blueprint for the North West Minerals Province,” he said.
“Senex looks forward to building another strong, long-term and mutually-beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower-carbon future.
“Senex also acknowledges APA as an important part of the value chain delivering energy to Mount Isa.”
Employing more than 250 people in the production of zinc concentrates, New Century exports to 12 smelters on three continents.
The agreement continues Senex’s evolution as a natural gas provider. Since 2019, the company has signed 10 major natural gas supply agreements, linking up with the likes of Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.