29Metals has awarded Senex Energy with a gas supply agreement at the Capricorn copper mine in Far North Queensland, securing 2.5 petajoules of natural gas over three years.
The gas will be supplied to APA Group’s Diamantina power station in Mount Isa, 120 kilometres south of the Capricorn site.
Senex managing director and chief executive officer Ian Davies said the company was pleased to be accelerating the Queensland Government’s plans for the region.
“The Capricorn copper mine is a critical project in the Queensland Government’s Strategic Blueprint for the Northwest Minerals Province,” Davies said.
“Copper in particular has a large role to play in the production and operation of next generation clean technologies such as electric vehicles, and solar and wind power sectors.”
This was the second contract of its nature for Senex in September, after the company signed a seven petajoule gas supply contract with New Century Resources at the same Diamantina power station.
Davies said the 29Metals contract further cemented Senex’s presence in the area.
“Senex looks forward to building another strong, long-term and mutually beneficial relationship that support jobs, the economy, and helps meet Australia’s energy demand as it transitions to a lower carbon future,” he said.
The 29Metals contract will come at a fixed price to begin from January 1, 2022.
The supply of natural gas to Capricorn will facilitate the mining of 1.8 million tonnes of ore per annum, as 29Metals targets a 10-year mine life.
Senex has been trusted with a combined 80 petajoules worth of contracts for customers including Adbri, CleanCo Queensland, Opal, and Visy Glass.