Caracal Gold completes switch to national power grid
Caracal Gold PLC (LSE:GCAT) has announced completion of connection to Kenya’s national power grid at its producing Kilimapesa gold mining and processing operations in Kenya.
This switch over from diesel power generation in October is part of the gold producer’s efforts to build sustainable mining and gold processing operations and optimise and increase profitability. Currently they making preparations to install grid power to the underground mine, which is expected to provide further cost savings and associated environmental benefits from Kenya’s high proportion of energy from renewable sources. Costs savings at Kilimapesa are estimated to be roughly US$100 per oz at current gold production levels.
Installation work
“We’re pleased with the efficient and rapid time frame that the mains power supply was completed and would like to thank all involved in the installation work. Importantly, as well as providing major cost savings to our gold mining operations, the switch to the national grid delivers significant associated environmental benefits given Kenya’s use of renewable energy, most of which comes from geothermal, hydro, and wind,” said Chief executive Robbie McCrae.
The switch over to national grid power was finished ahead of schedule following the commencement of work in September 2021. Availability of grid power was said to have been “very good” since the switch over and is expected to continue to be so given the well-established power generation infrastructure in Kenya.
Caracal was established to acquire and develop under exploited gold mining opportunities in East Africa, with the medium-term goal of producing circa 50,000 ounces of gold per annum with a resource in excess of 2 million ounces.
