AngloGold to build one of Australia’s largest renewable energy projects

AngloGold Ashanti (NYSE: AU; JSE: ANG) announced on Monday it would build one of the largest renewable energy projects in Australia’s natural resource sector, which will supply power its Tropicana gold mine.

The company has entered into an agreement with Pacific Energy to construct and operate 62 MW of wind and solar generation capacity at the site, located 330 km east-northeast of Kalgoorlie in Western Australia.

The project is one of the measures the company has taken towards decarbonizing its operations, as it will reduce Tropicana’s diesel and gas consumption for power generation by 96% and 50% respectively, chief executive Alberto Calderon said in a statement.

“We have a responsibility to proactively identify and address current and future climate-related threats,” he added.

AngloGold announced last year a plan to cut by 30% its Scope 1 and Scope 2 emissions by 2030 through a combination of renewable energy, initiatives to improve efficiency and the use of lower-emissions power sources.

Tropicana’s hybrid wind and solar with battery storage facility will be the first of its kind implemented by the gold miner and will reduce the average carbon emissions by more than 65,000 tonnes per annum over the 10-year life of the agreement, AngloGold said.

Australia’s Pacific Energy will be in charge of building and later operating the combined renewables-gas power station for the first decade. The construction costs will be incorporated into the ongoing power costs charged to the Tropicana JV partners — AngloGold (70%) and Regis Resources (30%).

Tropicana, a large open-pit gold operation with a growing underground mining component, produced 437,000 oz. (100%) in 2022.

Construction is scheduled to start in the second half of this year, with the renewable energies project to be completed in early 2025.