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Allied Gold Announces Long-Term Power Purchase Agreement For Kurmuk Gold Project
TORONTO, Aug. 19, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is pleased to announce that Kurmuk Gold Mine PLC ("KGM"), its sub
About this update from Allied Gold Corporation
[{"type":"text","content":" TORONTO, Aug. 19, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (\"Allied\" or the \"Company\") is pleased to announce that Kurmuk Gold Mine PLC (\"KGM\"), its subsidiary that owns the Kurmuk Gold Project in Ethiopia, has entered into a definitive Power Purchase Agreement (\"PPA\") with Ethiopian Electric Power (\"EEP\") to secure a reliable, competitive, and sustainable energy supply for the Kurmuk Gold Project throughout the life of the mine. This is an important milestone in the project's development, as a steady supply of hydroelectric power is one of the factors that ensures the Kurmuk Gold Project remains one of the lowest all-in sustaining cost (\"AISC\")(1) projects in the world. Ethiopia is a low-cost power producer, generating power almost entirely through hydroelectric sources, making it one of the most durable and cleanest power supplies globally. The Kurmuk Gold Project is currently under development and is expected to begin operations in the second quarter of 2026 (more information on the project is provided below). Key Terms of the Agreement: Term: The PPA will be in effect for a period of twenty years and may be extended by mutual agreement. Energy Charge: The agreement secures a flat energy charge of US$0.04 per kWh, applicable from the supply commencement date and remaining fixed for the entire term, providing cost certainty for the project. Renewable Energy Source: The Kurmuk Gold Mine will benefit from Ethiopia's predominantly renewable energy sources, aligning with the Company's commitment to sustainable mining practices. Transmission Line Construction: Electrical grid power will be supplied to the operation via a 75-kilometer, 132 kV power line, with substations at Asosa, a major city in the country near the project, and at the project site. The government will provide the grid connection, which will increase their equity stake in KGM from 5 percent to 7 percent, as defined in the Kurmuk Development Agreement. On-site power will be distributed via a network of 11 kV power lines. Securing the terms of the PPA marks a key milestone in advancing the Kurmuk Gold Project, cementing its path to becoming a low-cost producing mine for the Company. This agreement not only ensures the project's financial viability by locking in low energy costs but also reinforces Allied's strategic focus on leveraging sustainabl...