Red 5 has secured gas supply and transport agreements from Alinta Energy and APA Group for the King of the Hills gold project in Western Australia.
The gas supply agreement with Alinta Energy will last for an initial three years from the March quarter of 2022, with the option to continue for an additional two years.
Red 5 managing director Mark Williams said these contracts were important to the schedule of King of the Hills, and Alinta and APA were prime providers.
“Gas supply represents a vital component in the delivery of the King of the Hills project, providing an efficient and low-cost source of energy to power the operation,” Williams said.
“Both Alinta Energy and APA are highly regarded energy and infrastructure suppliers, and we’re very pleased to now have these long-term contracts in place.”
The gas transport agreement with APA involves three separate contracts.
The first will be for the construction and development of the pipeline’s lateral connection and gas let down station, while the other two cover the transportation agreement and the access deed.
The transportation agreement will last for 10 years once the lateral pipeline has been completed, also around the March quarter of 2022.
The new pipeline infrastructure will connect with the Goldfields gas pipeline, 12 kilometres west of the mine.
The gas will power the 30 megawatt power station currently under construction by Zenith Energy.
Williams said King of the Hills will soon have a great range of power supplies, ensuring the productivity of the 4.1 million ounce gold project.
“Our gas supply under these agreements will be integrated with a solar farm and battery, ensuring King of the Hills has a reliable and cost-effective power solution in place,” Williams said.
King of the Hills is set to deliver 2.4 million ounces of gold over a 16-year mine life for Red 5.
First gold pour is anticipated to occur in the June quarter of 2022.