Nordgold to Construct New Power Plant at its Lefa Mine in Guinea
- US$23 million construction contract signed with SUMEC
- 17,000-ton reduction of greenhouse gas emissions per year
- Enhanced safety and stability of the electricity supply
London, United Kingdom, 20 April 2020 – Nordgold Group (“Nordgold” or the “Company”), the internationally diversified gold producer, has signed an Engineering, Procurement and Construction agreement with China’s leading manufacturing service group SUMEC, a key member of China National Machinery Industry Corporation (SINOMACH), to design and construct a 33 megawatt power plant at its Lefa mine - one of the largest gold mines in Guinea.
The new heavy fuel oil (HFO) power plant will replace the existing facility, in turn reducing both fuel consumption for electricity production by 15% and engine oil by 30%. This will result in a 17,000-ton reduction of greenhouse gas emissions per year, which is in line with Nordgold’s climate change objectives as well as its commitments to the United Nations Sustainable Development Goals.
Hyundai Heavy Industries, the world’s largest shipbuilding company and leading manufacture of heavy industry machinery, is providing the power plant’s main generating equipment. The power plant will enable a significant reduction in operating costs, in addition to enhancing the stability of the electricity supply for over 15 years Lefa’s life of mine. Moreover, the installation of the latest fire detection systems will increase employee safety.
The design and construction of the project is expected to cost approximately US$23 million, with the power plant expected to be completed by the end of 2021.
During construction, hundreds of additional jobs will be created and main essential construction materials including sand, cement, gravel amongst others will be sourced locally from Guinean suppliers.
Nikolai Zelenski, CEO of Nordgold, commented:
“Even during these challenging times, we remain committed to investing in Guinea. The new power plant is an important investment as it enables us to both decrease greenhouse gas emissions and provide sustainable power generation for our Lefa mine. We are looking forward to working with SUMEC and Hyundai to achieve this project.”
Nordgold acquired the Lefa mine in 2010. Since then, the Company has invested more than US$1 billion into the country thereby maintaining its position as one of Guinea’s leading gold producers. From 2011 to 2019, Nordgold paid Guinea c. US$200 million in corporate taxes and royalties and Lefa provides direct employment to nearly 1,200 employees, as well as over 1000 indirect jobs. The Lefa mine has also invested significantly to improve the provision of local health and education services, including the deployment of new medical facilities and construction of 40 schools.
Nordgold is an internationally diversified one million ounce gold producer with over 8,000 people operating a portfolio of ten mines (in Burkina Faso, Guinea, Russia and Kazakhstan) and a number of development and exploration projects in West Africa, Eurasia and the Americas. Since its foundation in 2007, Nordgold has established a global reputation as a leading developer of tier one gold mining assets with a proven commitment to community engagement, sustainability, efficiency and operating in an environmentally responsible manner. Since 2013, Nordgold has successfully constructed three gold mines, including two in Burkina Faso (Bouly and Bissa) and most recently, the Gross mine in Russia.
| Olga Ulyeva
Head of Media Relations
|Peter Ogden||Tel: +44 (0) 20 7250 1446|