Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of gold mining company Centamin (LON: CE) are trading higher on Tuesday following the company's announcement that it has awarded the engineering, procurement and construction contracts for the 36MW solar farm and 7.5 MW battery energy storage system at the Sukari Gold Mine.
Centamin's share price is currently trading 2.07% higher at 109.65p following the announcement.
Renewable energy specialist firm, juwi AG, has been contracted to design, supply and integrate the Sukari solar and battery plant into the existing diesel power plant.
Meanwhile, Giza Systems have been contracted to install the Sukari solar plant. Giza are systems integrators in the Middle East and Africa region.
“Solar is a rapidly growing source of power within Egypt and Centamin is able to benefit from the expanding local expertise, whilst remaining committed to promoting and prioritising local socio-economic partnerships,” Centamin stated.
According to Centamin, the Sukari solar plant, located within Egypt's Eastern Desert, will be the largest hybrid solar project at an off-grid mining operation globally and is expected to reduce diesel fuel consumption at Sukari by an estimated 22 million litres per annum and lower carbon emissions by an estimated 60,000 tonnes CO2-e per annum.
The company also believes integrating a solar power solution will reduce operating costs, including an estimated $9-13 million savings in annual fuel costs and reduced exposure to fuel price volatility.
“Centamin's decision to integrate sustainable solar power at Sukari is fully aligned with our commitment to responsible mining. It has enabled us to marry up our environmental stewardship philosophy with our strategic objective of maximising returns for all stakeholders,” said Martin Horgan, Centamin's CEO.
“With phase one of the projectnear-completee, including completion of the pioneering works across the 85-hectare site, concluding these definitive engineering, procurement and construction contracts was the next significant milestone in delivering the Sukari solar plant. Working with our partners we will deliver the largest hybrid solar project of its kind, which will reduce our fuel consumption and greenhouse gas emissions from 2022 onwards,” added Horgan.
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