COMPANHIA ENERGÉTICA DE MINAS GERAIS - CEMIG G Mining Ventures Corp. announced that it has entered into a power purchase agreement with Companhia Energetica de Minas Gerais and CEMIG Geracao e Transmissao S.A., securing low-cost, 100% renewably generated power for its 100% owned Tocantinzinho Gold Project. TZ is currently under construction in the State of Para, Brazil and remains on budget and on track for commercial production in H2-2024.
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 Study. Electric 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 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. 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 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.
