Australia to propose tax incentives for critical minerals
The proposed law will set up a tax incentive worth 10% of relevant processing and refining costs for 31 critical minerals.
Newcrest Mining (ASX, TSX, PNGX: NCM) plans to meet the future energy requirements of its Cadia mine in New South Wales by using renewable power sourced from the Rye Park wind farm located north of Yass and east of Boorowa.
On Wednesday, the gold miner signed a 15-year renewable power purchase agreement (PPA) with Tilt Renewables (NZX, ASX: TLT), owner and developer of the farm.
From January 2024, when commercial operations are targeted to commence, Newcrest will contract for approximately 55% of Rye Park’s planned 400MW output, equivalent to more than 40% of Cadia’s projected energy demand that calendar year.
Rye Park would become the largest wind farm directly enabled by a corporate PPA in Australia
The PPA, together with the forecast decarbonization of NSW electricity generation, is expected to deliver an approximate 20% reduction in Newcrest’s greenhouse gas emissions and is a significant step towards achieving its target of a 30% reduction by 2030, the company said.
Rye Park would become the largest wind farm directly enabled by a corporate PPA in Australia, and the project is now expected to move from the development stage into financing and construction.
“This new contract secures renewable for our Cadia operation, reduces carbon emissions and helps us maintain competitive energy costs,” said Newcrest MD and CEO Sandeep Biswas.
“This is a critical step in our transition to sustainable energy use at our operations. As part of our climate change policy released last June, we have committed to a significant reduction in emissions intensity, and this agreement is a major step towards delivering on that objective,” Biswas added.
The PPA is conditional on Tilt Renewables achieving financial close for the project and is a contract for difference, which requires no upfront capital investment by Newcrest.
The PPA will act as a partial hedge against future electricity price increases and will also provide Newcrest with access to large-scale generation certificates which it intends to surrender to achieve a reduction in greenhouse gas emissions.
