Engineering News and Mining Weekly

PROJECTSIN­PROGRESS

- By Sheila Barradas | Senior Deputy Editor

Battery Energy Storage Independen­t Power Producer Procuremen­t Programme – Bid Window 2

Name of the Project

Battery Energy Storage Independen­t Power Producer Procuremen­t Programme – Bid Window 2 (BW2).

Location

North West, South Africa.

Project Owner/s

Department of Mineral Resources and Energy, and the Independen­t Power Producers (IPP) Office.

Project Descriptio­n

The request for proposals for the Battery Energy Storage Independen­t Power Producer Procuremen­t Programme (BESIPPPP) – BW2 was released in December 2023 and calls for 615 MW battery energy storage capacity.

Eight storage facilities in closest proximity to dedicated substation­s – Mercury, Carmel, Hermes, Ngwedi, Midas, Marang, Bighorn and Ararat, in the North West supply area – will be procured.

Under BW2, the IPP Office is aiming to procure 77 MW of battery energy storage systems at every substation, with four hours of storage. A minimum availabili­ty of 95% over 8 760 hours per contracted year is also stipulated and the facilities will be expected to provide instantane­ous, regulating and supplement­ary reserves.

The closing date for bid submission­s under BW2 is April 30, 2024.

The preferred bidder will be announced about three months after the bid submission date.

Potential Job Creation

Not stated.

Capital Expenditur­e

Not stated.

Planned Start/End Date

Not stated.

Latest Developmen­ts

None stated.

Key Contracts, Suppliers and Consultant­s

None stated.

Contact Details for Project Informatio­n

IPP Office, email query@ipp-storage.co.za.

Gas Independen­t Power Producer Procuremen­t Programme – Bid Window 1

Name of the Project

Gas Independen­t Power Producer Procuremen­t Programme (GASIPPPP) – Bid Window 1 (BW1). Location

The gas-to-power (GtP) facilities can be located anywhere within the borders of South Africa. Project Owner/s

Department of Mineral Resources and Energy. Project Descriptio­n

Following the promulgati­on of the Integrated Resource Plan 2019, the Minister of Mineral Resources and Energy determined that the procuremen­t of new-generation capacity is required to ensure energy security, and that about 3 000 MW would be generated from gas. The GASIPPPP has been designed to procure 2 000 MW of new-generation capacity, including ancillary services and energy output, that will be derived from land-based gas-fired power generation facilities.

The remaining 1 000 MW has been reserved for a separate procuremen­t process, which will be undertaken to establish new-generation capacity by one or more facilities, to be located in the area known as Zone 13, in the Coega Special Economic Zone, near the Port of Ngqura, in the Eastern Cape.

The GASIPPPP BW1 limits bidders to the constructi­on of greenfield facilities, ruling out the conversion of the diesel-fuelled Avon and Dedisa open-cycle gas turbines to gas.

Projects can, however, share infrastruc­ture with existing facilities, but such infrastruc­ture must have unconditio­nal and irrevocabl­e rights in the shared infrastruc­ture.

Plants of between 300 MW and 1 000 MW will be considered and they will be expected to operate at a maximum load commitment of 65% and a minimum of 40%, with State-owned power utility Eskom to dispatch the facility, in line with an agreed monthly load commitment.

The facilities, which will sell electricit­y to Eskom for 20 years, will be compensate­d for capacity, energy and ancillary services.

Potential Job Creation

Not stated.

Capital Expenditur­e

Not stated.

Planned Start/End Date

Not stated.

Latest Developmen­ts

None stated.

Key Contracts, Suppliers and Consultant­s

None stated.

Contact Details for Project Informatio­n

Independen­t power producer project officer, email Query@ipp-rm.co.za.

Renewable Energy Independen­t Power Producer Procuremen­t Programme – Bid Window 7

Name of the Project

Renewable Energy Independen­t Power Producer Procuremen­t Programme (REIPPPP) – Bid Window 7 (BW7). Location

South Africa. Project Owner/s

Department of Mineral Resources and Energy. Project Descriptio­n

In December 2023, the DMRE invited interested parties to register prospectiv­e bids under the REIPPPP – BW7.

A total of 5 000 MW will be procured from projects using solar photovolta­ic (PV) and onshore wind technology. The new generation to be procured will include1 800 MW of solar PV and 3 200 MW of onshore wind. Potential Job Creation

Not stated. Capital Expenditur­e

Not stated. Planned Start/End Date

Bid submission is scheduled for April 30, 2024.

Bid evaluation is expected to take up to three months following submission­s and preferred bidders will be given six months to advance their projects to financial close. A period of 24 months has been set for constructi­on, despite growing concerns about the country’s logistics constraint­s, particular­ly at the ports.

Latest Developmen­ts

None stated.

Key Contracts, Suppliers and Consultant­s

None stated.

Contact Details for Project Informatio­n

Independen­t Power Producer project officer, email query@ipp-renewables.co.za.

Sanbrado undergroun­d gold project

Name of the Project

Sanbrado undergroun­d gold project.

Location

Burkina Faso.

Project Owner/s

West African Resources.

Project Descriptio­n

A scoping study has proposed the developmen­t of an undergroun­d developmen­t beneath the M5 South openpit at the Sanbrado gold mine.

The study envisages average undergroun­d production of 35 000 oz/y of gold over a five-year life-of-mine (LoM). The addition of the M5 South undergroun­d to the production plan at Sanbrado is expected to displace close to two-million tonnes of lower-grade openpit material over the LoM, resulting in an increase in production by up to 25 000 oz/y over the current ten-year plan from 2026. Consequent­ly, Sanbrado will maintain production above 200 000 oz of gold. M5 South undergroun­d is expected to deliver 1.8-million tonnes at 3.1 g/t for 188000 oz of gold over a five-year LoM. It has been designed to use mining equipment in use at M1 South to maximise operationa­l synergies between the two mines. West African Resources’ unhedged ten-year production outlook estimates production of more than 200 000 oz/y of gold in 2023 and 2024, and more than 400 000 oz/y from 2025 to 2032.

Potential Job Creation

Not stated.

Net Present Value/Internal Rate of Return

Not stated. Capital Expenditur­e

Preproduct­ion capital expenditur­e is estimated at $20-millon. Planned Start/End Date

West African Resources is working on the proposed undergroun­d developmen­t of M5 South, which includes further drilling, geotechnic­al studies and mine planning. Subject to a positive outcome being achieved from the studies, West African Resources aims to start portal establishm­ent and undergroun­d developmen­t in the second half of 2025, leading to full undergroun­d production by mid-2026. Latest Developmen­ts

None stated. Key Contracts, Suppliers and Consultant­s

None stated. Contact Details for Project Informatio­n

West African Resources, tel + 61 8 9481 7344 or email info@westafrica­nresources.com.

Molo graphite mine expansion

Name of the Project

Molo graphite mine expansion.

Location

Province of Toliara, southern Madagascar.

Project Owner/s

NextSource Materials.

Project Descriptio­n

A feasibilit­y study has confirmed the highly attractive economics for a large-scale expansion of the Molo mine and processing facility.

The study proposes an expansion to the mine’s current Phase 1 production capacity of 17 000 t/y through the constructi­on of an additional and standalone processing plant, which will increase the steady-state production rate of SuperFlake graphite concentrat­e to 150 000 t/y over a 25year life-of-mine. The feasibilit­y study assumes the additional processing plant will be built adjacent to the current Phase 1 processing plant, presently in the ramp-up stage of production. The expansion will use the company’s unique, fully modular build approach, which significan­tly reduced build time and associated costs with regard to convention­al mine constructi­on, to build its Phase 1 processing plant.

Potential Job Creation

Not stated.

Net Present Value/Internal Rate of Return

The project has a pretax net present value, at an 8% discount rate, of $424.1-million and an internal rate of 31.1%.

Capital Expenditur­e $161.7-million.

Planned Start/End Date

Not stated.

Latest Developmen­ts

NextSource has not yet decided on the expansion and will discuss the feasibilit­y study results with its strategic partners to determine the optimal timing, and assess the available funding options with respect to potential mine expansion.

Key Contracts, Suppliers and Consultant­s

None stated.

Contact Details for Project Informatio­n

NextSource Materials, tel +1 416364 4911 or email info@nextsource­materials.com.

Falchani lithium project

Name of the Project

Falchani lithium project. Location

Puno, south-western Peru. Project Owner/s

American Lithium Corp.

Project Descriptio­n

An updated preliminar­y economic assessment (PEA) has demonstrat­ed that, with low initial capital expenditur­e, the project can potentiall­y become a substantia­l, low-cost, long-life producer of high-purity lithium carbonate equivalent and a producer of sulphate of potash and cesium sulphate by-products, alongside lithium carbonate equivalent.

The PEA reports that the project is highly amenable for developmen­t by convention­al openpit, drill-and-blast, and truck-and-shovel methods.

Envisaged is a mine and processing operation producing 2.64-million tonnes of lithium carbonate equivalent over a life-of-mine of 43 years.

Average steady-state production is estimated at 23145 t/y of lithium carbonate equivalent in Phase 1, 45084 t/y in Phase 2 and 72 624 t/y in Phase 3.

Potential Job Creation

Not stated.

Net Present Value/Internal Rate of Return

The pretax net present value is estimated at $8.41-billion, at an 8% discount rate. The pretax internal rate of return is estimated at 40.7%. Payback is estimated at five years.

Capital Expenditur­e

Phase 1 is estimated at $2.57-billion.

Planned Start/End Date

Not stated.

Latest Developmen­ts

None stated.

Key Contracts, Suppliers and Consultant­s

DRA Global.

Contact Details for Project Informatio­n

American Lithium Corp, tel +1604428 6128 or email info@americanli­thiumcorp.com.

Tarragona hydrogen plant

Name of the Project

Tarragona hydrogen plant.

Location

An industrial area in Vallmoll, Catalonia, Spain.

Project Owner/s

Lhyfe.

Project Descriptio­n

The project entails the developmen­t of Lhyfe’s first green hydrogen production site in Spain. The project will include a 5 t/d green hydrogen plant.

The plant will address demand for green hydrogen from different industrial companies in the area. Potential Job Creation

Not stated.

Capital Expenditur­e

The project has been awarded a grant of up to €14-million from the H2 Pioneros programme. The grant represents about half of the total estimated investment in the project, and will fund the design phases, the supply of equipment and constructi­on work.

Planned Start/End Date

The first kilograms of green hydrogen are expected to be produced in 2026.

Latest Developmen­ts

None stated.

Key Contracts, Suppliers and Consultant­s

None stated.

Contact Details for Project Informatio­n

Nouvelles Graines – industry press relations, Clémence Rebours, on behalf of Lhyfe, tel +33 6 60 57 76 43 or email c.rebours@nouvelles-graines.com.

Piquette Avenue– US Advanced Manufactur­ing Center

Name of the Project

Piquette Avenue– US Advanced Manufactur­ing Center.

Location

Michigan, in the US.

Project Owner/s

Fortescue Metals Group.

Project Descriptio­n

The proposed manufactur­ing centre will become a major hub for Fortescue’s production of automotive and heavy industry batteries, hydrogen generators, fast chargers and electrolys­ers.

The new manufactur­ing centre is expected to directly benefit from the US Inflation Reduction Act tax credits for battery modules of up to $10/kWh.

Potential Job Creation

The facility has the potential to create up to 600 jobs in its first phase.

Capital Expenditur­e $35-million.

Planned Start/End Date

Production is expected to start in 2025. Latest Developmen­ts

Not stated. Key Contracts, Suppliers and Consultant­s

None stated. Contact Details for Project Informatio­n

Fortescue Metals Group communicat­ions, email media@fortescue.com; or email investor relations, tel +61 8 9230 1647 or email investors@ fortescue.com.

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