A recent study by Goldman Sachs of the Australian gold mining industry has shown that the use of renewable energy sources could help to overcome the significant energy price hikes and drive the cost of energy down by up to 50%.
According to mining giant Glencore, electricity prices in Australia have risen by 100% over the last three years, leading the company to consider shuttering operations at some of its main mining sites.
In NSW, Newcrest’s flag-ship Cadia operation is facing a $32m increase in their future annual power bill as a result of a 90% increase in the cost of power.
Goldman Sachs’ report found that Australian gold miners will spend approximately $500 million on power contracts by 2020. Despite this investment, the Australian power grid may not be able to provide the gold mining industry with the energy security it needs, especially in the light of recent coal-fired power station closures and rising gas prices due to increased exports of liquefied natural gas.
In the face of these price increases, mining companies are increasingly turning to renewable energy to shield themselves from rising power costs, provide their operations with energy security and reduce their carbon footprint. Read the full article HERE.