Pacific wins Panoramic power contract

Pacific Energy has won a power supply contract with Panoramic Resources for the restart of the nickel producer’s mothballed Savannah project in the east Kimberley.

Under the contract, James Cullen-led Pacific will expand its existing 12-megawatt diesel power station at the mine to 14MW.

The contract is set to begin next month and run for about eight years, in line with the expected mine life, with an option to extend for a further five years.

Mr Cullen said the contract had been constructed with flexibility to convert to alternative fuel sources, and includes provision for an increase in power generation capacity of at least 4MW.

“We are very happy that Contract Power is playing a key role in the restart of Savannah, continuing the relationship and supporting Panoramic in this exciting new phase of the mine,” he said.

The latest contract is Pacific’s fourth since June.

In August, Pacific subsidiary Contract Power was awarded a variation to install 17MW at Mineral Resources’ Wodgina lithium mine, taking generation capacity at that project to 52MW.

Pacific also won a further 5MW build, own and maintain contract for Beacon Minerals’ Jaurdi gold project in June.

Pacific’s total contracted capacity is now 391MW, while its earnings guidance of between $54 million and $55 million remains unchanged.

Shares in Pacific were up 0.98 per cent at 52 cents each at 12pm AEDT.