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Wind PPA for Chile gold and silver mine

Seawind Holdings SpA has signed a power purchase agreement (PPA) with Compaàƒ±ia Minera Cerro Bayo Limitada to supply power to the isolated electrical grid system of the Cerro Bayo mining project in Chile.

Seawind, a wholly owned subsidiary of Rame Energy plc, will provide the power from its own wind farm with an installed capacity of up to 1.8 MW, to be located on the Cerro Bayo property (pictured). It is expected that the wind farm will contribute approximately 6250 MWh of electricity per year to the power supply of the mine and the project will work in parallel with Cerro Bayo’s existing diesel generating system, located a few hundred metres away from the proposed site for the turbines. The project requires no environmental permitting studies and Rame will carry out the entire construction of the project to minimise build costs and execution of risk.

Owned by Mandalay Resources Limited, the Cerro Bayo gold and silver mine is located in Southern Chile, 130 km south of Coyhaique, the capital of Region XI. The PPA means Rame will provide power at an agreed price per MWh for a minimum of five years and thereafter on a rolling one year contract. Commercial operations are expected to start by April 2015.

Rame CEO, Tim Adams, commented: ‘Under the agreement, Rame will provide not just cheaper and cleaner power but also better energy security and reduced price volatility to the Cerro Bayo Mine.’