- Binding, multi-year, power purchase agreement executed, ensuring low-cost and renewably generated power to completely meet the requirement of the Tocantinzinho Project through commissioning, ramp-up and initial years of commercial production
- All-in cost of electricity ~25% lower than estimates used in the 2022 Feasibility Study, with fixed energy pricing for 2024, 2025 and 2026
- Guaranteed supply of certified renewable hydroelectric power, with traceability, in line with GMIN's target of being a low CO2 emission gold producer
G Mining Ventures Corp. ("GMIN") (GMIN) (GMINF) is pleased to announce that it has entered into a power purchase agreement ("PPA") with Companhia Energética de Minas Gerais ("CEMIG") and CEMIG Geração e Transmissão S.A., securing low-cost, 100% renewably generated power for its 100% owned Tocantinzinho Gold Project ("TZ" or the "Project"). TZ is currently under construction in the State of Pará, Brazil and remains on budget and on track for commercial production in H2-2024.
Louis-Pierre Gignac, President & Chief Executive Officer, commented: "I am very pleased by the major de-risking milestone of entering into this fixed-price PPA with a reliable electricity supplier. The low-cost power generated from renewable hydroelectric sources will ensure that TZ is in the lower quartile of the global gold production curve both in terms of cost and carbon emissions. This is a major step toward safeguarding value for our shareholders and stakeholders alike."
Dimas Costa, CEMIG's Chief Commercial Officer, states that: "This is yet another important and relevant international customer partnership that the company establishes in the free energy market. We always seek to meet the expectations presented, signing contracts with benefits for both parties, in addition to bringing to our portfolio partners with values similar to those of CEMIG, with a focus on sustainable actions, job and income generation and the promotion of the economy."
Guaranteed Supply of Renewable Energy
The PPA was entered into between Brazauro Recursos Minerais S.A., a subsidiary of the Corporation, and CEMIG, a large and reputable energy provider in Brazil with a generating capacity of 3.3GW (hydroelectric, wind, and solar).
The PPA guarantees the supply and delivery of power from March 1, 2024 through December 31, 2026, supplying more than 100% of the expected power demand at TZ during commissioning, ramp-up and initial commercial production. The contract functions on a consumption basis, with no take-or-pay obligations, ensuring GMIN's costs are variable based on actual usage. The all-in cost of electricity inclusive of energy, transmission costs, distribution costs, other expenses and taxes represent a ~25% cost reduction compared the $/kWh assumed in the 2022 Tocantinzinho Feasibility Study1. Electricity costs represent ~25% of processing costs, and ~10% of total operating costs.
In alignment with GMIN's Environmental, Social and Governance goals, the PPA contract grants Renewable Energy Certificates ("REC") to GMIN as assurance of the supply of renewably generated power. This will enable GMIN to produce gold ounces with Scope 1 emissions in the lowest quartile of the CO2 emissions curve when compared to similar operations in the Americas.