Dark Horse Resources and Sunset Power Pty Ltd. will collaborate on the development of a coal-fired power station in Argentina's Rio Negro province. The two companies signed a memorandum of understanding to develop the thermal plant. It would be built adjacent to Dark Horse's majority-owned Pico Quemado coal mine project.

Sunset Power and Dark Horse will endeavor to enter a power purchase agreement with the government of Argentina, obtain all necessary development approvals and subsequently procure the construction and commissioning of all the power station facilities and finance for the power project. The firms expect to finalize the JV agreement this quarter and to have the studies and design ready in the first quarter of 2017. Dark Horse did not say what the plant's installed capacity will be.

The plant will connect to an existing 500kV transmission line feeding into the SADI national grid. The plant design will be based on ultra-supercritical technology, which requires less coal per megawatt-hour. Dark Horse also cited that electricity demand in Argentina is growing at roughly 1-2% a year, with little to no spare capacity to cushion peak demand of 24GW, on account of a lack of foreign investment.