Wiluna Mining (ASX: WMX) has extended Contract Power Group’s (CPG) supply contract at its Wiluna operation by 10 years to supply power at the minesite until 2031.

The contract extension will meet the needs of the operation’s Stage 1 Sulphide Project by providing a total of 14.1MW of power output, incorporate the reconfiguration of the on-site power station to increase gas generation and the addition of a 2.0MW battery energy storage unit to reduce diesel usage and reliance.

CPG has provided Wiluna’s power since June 2016, with electrical power historically derived from natural gas with diesel backup.

Wiluna Mining’s executive chair Milan Jerkovic said the company is excited about strengthening its operations by generating electricity with greater efficiency.

“Our operational energy efficiency and renewable sources of power is consistent with initiatives worldwide and across the mining industry,” he said.

“There will also be a longer-term preference for the development of mines with lower emission intensities for greenhouse gases.”

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Mr Jerkovic said Wiluna Mining’s plans are consistent with these trends.

“We look forward to working with Contract Power to not only transitioning the Wiluna mine once again into one of Australia’s biggest and most profitable gold mines, but to helping it become one of Australia’s cleanest mines,” he said.

As part of Wiluna Mining’s Stage 2 Development Plan earmarked for 2023, the company is assessing the integration of renewable power sources from a mix of solar, wind or pumped storage options for an expanded operation.

Wiluna Mining is also refining its plans with CPG to include decarbonisation within its power generation on-site, buffering the operation’s exposure to potential volatility in hydrocarbon fuel costs in order to maintain power reliability and cost-effectiveness for the operation.

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