Egyptian gold miner Centamin announced on Wednesday that it has awarded the engineering, procurement and construction (EPC) contracts for a hybrid solar project, incorporating a 36-megwatt (MW) solar farm and a 7.5-MW battery-energy storage system, at its Sukari Gold Mine to Germany's juwi AG and local company Giza systems. 

juwi will design, supply and integrate the solar and battery plant into the current diesel power plant, while Giza will install the solar plant, the company said in a bourse statement said, adding that the project is scheduled to be commissioned late in the first half of 2022. 

The total project capital expenditure is estimated at $37 million, the statement said. 

It said the Sukari solar plant would be the largest hybrid solar project at an off-grid mining operation globally and is expected to reduce diesel fuel consumption at the mine by an estimated 22 million litres per annum.  

The company hopes to save an estimated $9-13 million in annual fuel costs from the project, reduce exposure to fuel price volatility, reduce traffic and fuel transport to and from sites and increase the reliability of the power system, the statement said. 

Centamin CEO Martin Horgan said: "With phase one of the project near complete, including completion of the pioneering works across the 85-hectare site, concluding these definitive engineering, procurement and construction contracts was the next significant milestone in delivering the Sukari solar plant.  Working with our partners, we will deliver the largest hybrid solar project of its kind, which will reduce our fuel consumption and greenhouse gas emissions from 2022 onwards." 

The Sukari solar plant will use bifacial solar PV modules and a single axis tracking to maximise the total energy generation, and has been engineered with a longer-term outlook, enabling the solar and battery capacity to be increased if required, the statement said. 

The project will help Centamin lower carbon emissions by an estimated 60,000 tonnes CO2-e per annum, it said. 

As Egypt's biggest gold producer, Centamin's output last year stood at 452,320oz, according to its 2020 Annual Report. The company reported a profit after tax of $315 million on total revenues of $829 million. 

(Writing by Anoop Menon; Editing by Seban Scaria)  

 (anoop.menon@refinitiv.com)  

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