Challenger Exploration, an Australian-based gold developer focused on South America, has reached an agreement with YPF Luz, a major energy company in Argentina, to explore renewable energy options for its Hualilan Gold Mine.
YPF Luz will propose different technical alternatives for renewable energy sources, with Challenger deciding whether to proceed with any of the options. If a satisfactory alternative is found, a binding agreement will be negotiated, including a power purchase agreement or similar supply deal, with an energy supply price of below US7 cents per kilowatt hour.
The agreement has the potential to make Hualilan one of the lowest carbon intensity gold mines globally and enhance the project economics by providing low-cost power from a reliable source.
It would also enhance the “green credentials” of the project.
YPF Luz is one of Argentina’s largest energy companies with an installed capacity of 3.2 gigawatts, including 468 megawatts of renewable capacity.
Source: SMALL CAPS
Image Source: Challenger Exploration