Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Russian miner Nordgold (LON:NORD) said on Monday it would build a new power plant at its Lefa mine in Guinea as part of efforts to reduce its greenhouse gas emissions.
The gold producer, which acquired the mine in 2010, has commissioned the construction of the new 33 MW power plant to manufacturing service group SUMEC, a key member of China National Machinery Industry Corporation (SINOMACH).
Design and construction of the new power plant is expected to cost around $23 million, with completion slated for late 2021
Nordgold, which spun out of Russian steelmaker Severstal in 2012, said the new heavy fuel oil facility would replace the existing power plant. The move is expected to reduce both fuel consumption for electricity production by 15% and engine oil by 30%, resulting in an emissions reduction of 17,000 tonnes per year.
“The power plant will enable a significant reduction in operating costs, in addition to enhancing the stability of the electricity supply for over 15 years of Lefa’s life of mine,” Nordgold said.
Design and construction of the facility is expected to cost around $23 million, with completion slated for late 2021.
Lefa is one of the largest gold mines in Guinea, employing almost 1,200 people directly, as well as providing over 800 indirect jobs.
Last year, the company inked a deal with Total Eren, an independent power producer specializing in renewable energies, and Africa Energy Management Platform, its strategic development partner, to construct a 13 MW solar photovoltaic power plant for its Bissa and Bouly gold mines in Burkina Faso.
Nordgold, which acquired many of its major assets during the 2008-2009 financial crisis, also operates in Russia and Kazakhstan.
