Hydro-solar project to power copper mine in Ecuador

SolGold PLC has signed a Memorandum of Understanding (MOU) to spearhead a hydro-solar initiative to power its Cascabel copper-gold mine project in northern Ecuador.

The MOU was signed with Grupo Empresarial Semaica (Semaica Business Group), a construction company in Ecuador; Enerhydra, an American company whose partners have developed seven hydroelectric projects in Ecuador; and Constructora Nacional S.A., a construction company with extensive experience in hydroelectric development in Ecuador.

The MOU delineates the shared objectives and responsibilities of each party toward the development of a sustainable power project that will provide a capacity of about 200MW of clean, renewable energy to the Cascabel site.

The MOU encompasses considerations such as a potential power purchase agreement (PPA), financing arrangements, construction responsibilities, technical aspects, project operation and the ultimate end-user of generated energy. This agreement sets the stage for further technical assessments, facilitating progress toward a more definitive agreement while concurrently advancing Cascabel, according to a release.

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SolGold will not be responsible for financing, building or operating the power project. Instead, its role will focus on leveraging its position as an end-user to qualify for discounted power rates upon project completion.

Additionally, SolGold is committed to supporting its partners in fundraising efforts. Importantly, all terms of the agreement align with the shared commitment of both parties to environmental stewardship and sustainable economic development.

"Cascabel is already a remarkable project, but the prospect of harnessing clean hydroelectric and solar energy elevates its potential even further,” said Scott Caldwell, chief executive officer and president of SolGold Ecuador. “When we speak of world-class mines, it is about more than tonnes of ore; it is about the impact and legacy of the project locally and globally. This endeavour could position Cascabel as one of the world's largest copper-gold mines aiming to achieve a carbon-neutral footprint. By embracing green energy to extract copper, we are actively contributing to the green revolution and leading the way for others to do the same.”

It is envisioned that the project's financing will be secured through a combination of sources, including international financial institutions and other global entities specialising in sustainable energy investments. These partnerships could provide the necessary capital to fund construction and operational expenses. The use of hydroelectric and solar power sources offers the project significant potential cost savings over traditional energy sources, ensuring long-term operational efficiency and sustainability, SolGold said.

The project will adhere to stringent regulatory standards and environmental safeguards throughout every development phase, according to a release. Recognizing the importance of stakeholder engagement, the partners will involve local communities, government agencies and environmental organisations in the project's planning and implementation.

SolGold is a resources company focused on the discovery, definition and development of world-class copper and gold deposits.

Originally published on hydroreview.com