Nyashadzashe Ndoro
ZIM NOW REPORTER
Invictus Energy, Dallaglio Investments and Himoinsa Southern Africa signed a Memorandum of Understanding to explore a gas-to-power project to supply electricity to Eureka Gold Mine, one of the largest in Zimbabwe.
Invictus said in a statement that the MOU “demonstrates the immediate monetisation opportunities available to Invictus” following its gas discovery at the Cabora Bassa Project’s Mukuyu-2 wellsite.
The MOU lays out a plan for a pilot project that would use natural gas from Invictus’ Cabora Bassa Project to generate up to 12MW of power for the Eureka Gold Mine. The power could be delivered through the existing grid infrastructure located 5km away from the Mukuyu-2 wellsite, or through onsite generation with natural gas delivered via truck.
The pilot project is designed to provide “near-term monetisation and proof of concept” for future full field development, according to Invictus.
Following the signing of the MOU, Invictus and Himoinsa will conduct a feasibility study to determine the optimal way to deliver power to Eureka Mine. The study will consider factors such as technical feasibility, economic viability, environmental impact, and regulatory approvals.
If the feasibility study is successful, Invictus and Himoinsa plan to enter into a binding Gas Sale and Purchase Agreement. Under the GSPA, Invictus would supply natural gas to Himoinsa, which would provide power generation equipment and electricity to Dallaglio at Eureka.
Invictus Managing Director, Scott Macmillan said that the MOU is a major step forward in our early commercialisation strategy and that the company is “pleased to be partnering with one of the largest gold producers in the country” and “one of the leading power generation solutions companies” to develop the project.
“Eureka’s close proximity to Mukuyu and available infrastructure make this an ideal pilot project and provides us with line of sight to early first production, revenue generation and proof of concept for future full field developments and forge-scale gas-to-power projects,” said Macmillan.
Himoinsa Southern Africa Director, Matthew Bell, said that his company is “pleased to be working with Invictus and expending our relationship with Dallaglio to potentially provide a cleaner, cost effective and reliable source of energy to the Eureka Mine through substituting our diesel power generation with natural gas”.
“We look forward to working with Invictus and Dollaglio on this pilot, which can be used as a project reference for other mines in Zimbabwe. Africa and globally,” Bell said.
Dallaglio CEO James Beare said that “power is a critical input for mining operations in Zimbabwe and securing reliable and affordable energy is crucial to support our plans to expand production at Eureka”.
“Substituting coal and diesel fired power for natural gas supports our goal as a long-term sustainable gold producer and will significantly reduce our emissions profile,” said Beare.
“We look forward to working with Invictus and Himoinsa to realise this mutually beneficial project for the resources sector in the country.”
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