Golden Star Resources (GSC-T, GSS-X) has contracted for a 20-megawatt power station to be built at its Bogosu-Prestea gold mine complex in central Ghana, and will buy a minimum of half of the plant’s capacity.
The agreement is with a local power provider and is Golden Star’s reaction to a hydroelectric power shortage in Ghana during the 2006 dry season, when the Volta River Authority, the national power utility, instituted a program of load management and power cuts to the country’s large gold mines. Golden star, AngloGold Ashanti (AU-N, AGD-L) and Gold Fields (GFI-N, GOF-L) all were forced to cut back production or use diesel generators, which provided power at a higher cost than the national hydroelectric grid.
The 20-megawatt station, along with a 20% share in a 100-megawatt power plant the mining industry is building, will allow Bogosu to operate entirely independent of the national grid when necessary.
Be the first to comment on "Golden Star backs up Bogosu power (August 10, 2007)"