Blanket Mine secures contractor for US$13m solar project
“This will significantly reduce the risk to the mine of any further deterioration in the quality of grid power, which would necessitate increased use of diesel generators (which are substantially more expensive than grid power),” said Caledonia. The plant will also reduce Blanket Mine’s environmental footprint.
“Caledonia and Voltalia have agreed an initial design phase for the project after which, subject to the conclusion of an Engineering, Procurement and Construction (EPC) contract, procurement and construction are expected to begin with current indicated commissioning for the 12MW solar plant in the last quarter of 2021,” it said.
The project is primarily intended to protect Blanket Mine from any further deterioration in the electricity supply situation.
“Whilst the project is being done for largely defensive reasons, it is expected to yield a modest return to shareholders after taking account of the dilutive effect of the equity,” said Caledonia.
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