Zenith to energise Newmont’s Tanami gold mine

The Tanami site. Image: Newmont Mining

Zenith Energy has executed a power purchase agreement (PPA) to build, own and operate a 62MW power station for Newmont Mining’s Tanami gold mine in the Northern Territory.

The execution of the agreement follows Zenith being named by Newmont as the preferred bidder for the Tanami gold mine power services in December.

Under the agreement, Zenith will build, own and operate the 62MW power station, which will comprise a 52MW gas-fired and circa 10MW of diesel back-up power generation.

The power station will incorporate natural gas generators to provide Tanami with clean gas fuelled power generation into the future.

The PPA will commence in first quarter 2019 on a 10-year term, with Newmont having an option to extend the agreement by an additional 10 years.

Zenith managing director Hamish Moffatt said the agreement further demonstrated the energy company’s ability to deliver innovative, reliable, highly efficient and cost-effective power generation solutions in remote locations.

“We very much look forward to working with the Newmont team to deliver a clean power supply solution to Tanami for many years to come,” Moffatt said.