The Asia Miner

JUL-SEP 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 22 of 59

the asia miner • volume 16 • issue 3 21 WASTE TO ENERGY Hillgrove Resources is set to transform its Kanmantoo open pit mine into a pumped hydro facility in the Adelaide Hills region of South Australia. Mining at Kanmantoo, whose mine life was extended from 2016 to 2019 nearly five years ago, is now winding down. The copper mine was in operaঞon from 1970 unঞl 1976, but work by Hillgrove since 2004 has proved up an addiঞonal indicated and inferred mineral resource of 34.5 million tonnes grading 0.6 per cent copper and 0.1 grams of gold a tonne. Earlier this year, Hillgrove entered into binding agreements to sell the right to develop, own and operate the Pumped Hydro Energy Storage (PHES) project at its Kanmantoo mine to AGL Energy Limited for AU$31 million. The PHES project is expected to have generaঞng capacity of 250MW and eight hours of storage, making it the largest storage capacity in South Australia. The South Australian Minister for Energy and Mining, Dan van Holst Pellekaan sees this as an exciঞng pumped hydro project aligned with the Marshall Government's policy of matching storage capacity with renewable energy resources to deliver cheaper, more reliable and cleaner electricity for South Australian households and businesses. "I congratulate Hillgrove Resources and AGL for their agreement and look forward to the project developing in coming months and years," said Mr van Holst Pellekaan. In 2017 Hillgrove commenced invesঞgaঞng the merits of a PHES project at the Kanmantoo site. The raঞonale for the project was then and remains to be the fundamental changes occurring in the Naঞonal Electricity Market (NEM), including the withdrawal of coal fired generaঞon; significant increases in gas costs impacঞng the cost of gas-fired generaঞon and the significant increases in the development of intermient renewable generaঞon, both wind and solar. Consequently, cost effecঞve storage was required in the NEM and in South Australia to deal with volaঞlity in electricity prices and the reliability of supply. Steven McClare, Managing Director Hillgrove, said the Company was delighted to work with AGL on the delivery of this project. "This will transform a former mining site into one of the lowest cost electricity storage projects in Australia, at a ঞme when synchronous generaঞon and bulk storage is criঞcally needed. Although the progression of the PHES will prevent long term mining of the porঞon of the underground exploraঞon target directly beneath the exisঞng pit, the Board determined the AGL PHES offer represented a lower risk and higher value proposiঞon to shareholders," commented Mr McClare. Hillgrove to develop a PHES project at Kanmantoo Kanmantoo open pit mine gets a new lease of life as a pumped hydro facility

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