17th Oct 2014 08:34
LONDON (Alliance News) - Rame Energy PLC Friday said its subsidiary Seawind Holdings SpA has signed an agreement with Compania Minera Cerro Bayo Ltd to supply power to the isolated electrical grid system of the Cerro Bayo mining project in Chile.
The power purchase agreement follows the signing of a memorandum of understanding between the two companies back in July.
In a statement Friday, the Chile-focused energy consultant, engineer and power generator confirmed it will provide power to the Mandalay Resources Ltd-owned mining site at an agreed price per megawatt hour for a minimum of five years with commercial operations expected to start by April 2015.
"We see a range of good opportunities to apply our expertise in renewables to isolated off grid power systems and anticipate that our increasing presence in the growing 'diesel displacement' market will contribute significant income to the business as a whole," said Chief Executive Tim Adams in a statement.
Rame said it will provide power to the site from its own planned wind farm at the site, which will have an installed capacity of up to 1.8 megawatts.
The Cerro Bayo gold and silver mine is located in southern Chile.
Rame Energy shares were up 1.3% at 15.19 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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