TIDMCEY
RNS Number : 6946U
Centamin PLC
30 March 2023
30 March 2023
Centamin plc
("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
CENTAMIN's decarbonisation roadmap to 2030
MARTIN HORGAN, CEO, COMMENTED: "Centamin is a company with a
long-operating track record. Today is an important moment in our
journey and we're pleased to detail our interim decarbonisation
roadmap to 2030. This presents a responsibility and an opportunity
to be accountable in our vision and our pathway to becoming a low
carbon operator.
" Our vision for a low carbon future is a mining business with
sources of onsite and imported renewable energy, reductions in
absolute energy consumption through operational efficiencies and
creative new technological solutions, staged electrification of our
mobile fleet and increased recycling in our supply chain.
"In 2022, we studied opportunities to reduce the operational
emissions of Sukari over the life of mine, including sourcing clean
and lower carbon power through connection to the national grid and
further expansion of our onsite renewable energy production. We
have set an interim climate target of a 30% reduction in our Scope
1 and 2 greenhouse gas emissions by 2030, compared to a 2021
base-year. This would put us on a Paris-aligned trajectory to limit
global warming to 'well below' 2degC by 2050 and we continue to
pursue efforts to limit the increase further to 1.5degC. "
Centamin is delighted to publish its interim decarbonisation
roadmap to 2030, which targets a 30% reduction in operational Scope
1 and 2 greenhouse gas ("GHG") emissions and excluding several
further abatement opportunities which remain under review.
This is a Group target recognising that at present the Company's
sole operating asset, the Sukari Gold Mine, accounts for 99% of the
Company's total Scope 1 and 2 GHG emissions and is therefore the
focus of our climate transition strategy.
The Company's climate transition strategy for operational GHG
emission reduction comprises:
-- Renewable electricity : Sourcing clean power for our
operation through the procurement or development of renewable
energy supply
-- Low carbon power sources : Switching to lower carbon fuels,
together with electrification as an alternative to diesel use
applications, and
-- Energy efficiency : Continuous work to optimise and improve
the energy efficiency of all our processes.
In 2022, opportunities were studied and assessed to reduce the
operational GHG emissions at Sukari over the life of mine
(approximately 14 years). In the short-term, the immediate focus is
on the identification and delivery of projects that will
effectively reduce operational Scope 1 and 2 GHG emissions. In
2022, opportunities were studied and assessed to reduce the
operational GHG emissions at Sukari over the life of mine
(approximately 14 years). Over the longer-term, the Company
recognises the need to collaborate with our supply chain to reduce
Scope 3 GHG emissions, and more broadly, consider the social and
environmental inter-relationships associated with our
decarbonisation journey.
2030 CLIMATE TARGET
In the absence of carbon abatement, Scope 1 and 2 GHG emissions
in 2030 at Sukari are projected to be 550,819 tonnes of carbon
dioxide equivalent ("tCO(2) -e"). This business-as-usual scenario
is equivalent to a 14% increase in absolute emissions compared to
the 2021 base-year, primarily associated with higher demand on
stationary power consumption as Sukari continues to be optimised.
Execution of the decarbonisation roadmap is projected to reduce
Scope 1 and 2 GHG emissions by 30% compared to our 2021 base-year,
resulting in approximate emissions of 335,595 tCO(2) -e in
2030.
DECARBONISATION ROADMAP
The carbon abatement projects that underpin our interim target
of a 30% reduction in operational Scope 1 and 2 GHG emissions by
2030 are two-fold and are focussed on the stationary power
demand:
20MW(AC) Solar Power Expansion
In 2022, the Sukari 36MW(DC) (30MW(AC) ) solar plant was
successfully commissioned. Adding an additional 20MW(AC) extension
to the existing solar infrastructure (totalling 50MW(AC) ) would
fully meet the baseload power demand of the mine during peak
daylight hours.
The execution strategy involves installing 5MW(AC) each year
over four years from 2024. The estimated total capital cost for the
20MW(AC) solar power expansion is between US$25 million and US$35
million, allowing for inflation and including earthworks,
infrastructure connection and battery storage.
50MW(AC) Grid Connection
Following recent upgrades to Egypt's power distribution
infrastructure, a high voltage grid connection was extended through
Marsa Alam, the local city to Sukari, located approximately 25km
away from site. Establishing a 50MW(AC) connection to the national
grid, combined with the existing onsite solar plant, would fully
meet the electricity needs of the mine without the requirement for
onsite thermal power generation using diesel fuel.
Grid electricity is partly generated from renewable sources (12%
in 2021), with the remainder from non-renewable fuels,
predominantly natural gas. The Egyptian government is planning to
increase renewable energy generation to 40% by 2030 as published in
their Nationally Determined Contributions. Our 2030 interim target
accounts for an increase in renewable energy sourced through the
grid, from 12% in 2021 to 38%.
Then Company is targeting grid connection in 2024, and is
currently undergoing a tender process for project construction and
supply tariff. The early estimated capital costs are between US$20
million and US$30 million.
PROGRESS IN 2022
In Q4 2022, Sukari successfully commissioned the 36MW(DC)
(30MW(AC) ) solar plant and 7MW battery energy storage system,
providing a secondary energy source to Sukari and increasing the
renewable make-up of site power generation to 20%. This solar plant
will save up to 70,000 litres of diesel per day, equivalent to an
annual reduction of 60,000 tCO(2) -e in Scope 1 GHG emissions.
At Sukari, various efficiency initiatives were executed leading
to further GHG emission reductions, including:
-- Refitting the 48 truck haulage fleet with the lighter weight
and more efficient, high-production trays (30 trucks were fitted in
2022; 18 trucks in 2021), resulting in an 8% reduction in fuel
consumption per tonne of material moved
-- Optimisation of the fine grind process within the comminution
circuit in the processing plant
-- Replacement of older underground trucks and loaders with more efficient units, and
-- LED light bulb conversion across the mine site.
Collectively these initiatives decreased our Scope 1 GHG
emissions in excess of 43,000 tCO(2) -e in 2022, at an equivalent
capital carbon abatement expenditure of US$12.6 million.
ADDITIONAL OPPORTUNITIES FOR FURTHER carbon abatement
The Company's commitment to decarbonisation goes beyond the 2030
interim target and carbon abatement projects detailed above.
Several additional opportunities to reduce our GHG emissions have
been identified but require further technical and economic studies.
Importantly, grid connection would enable Sukari to introduce a
range of lower-carbon technologies, including electrification of
the mobile mining fleet and ongoing energy efficiencies. These are
currently excluded from our interim target.
Electrifying our mining fleet
Operation of the mobile mining fleet represents approximately
50% of our GHG emissions at Sukari. Opportunities to switch from
diesel use to power sourced from lower carbon fuels include:
-- Hybrid diesel-electric shovels to replace existing open pit face shovels
-- New generation hybrid diesel-electric loaders to replace existing underground fleet
-- In-pit crushing and conveyors to replace open pit haul trucks
for delivery of ore to the mill, and
-- Electrification of the underground load and haul fleet.
For each of these opportunities, the technology is commercially
available and viable and indicates a positive return on investment
within the operational life of Sukari.
Energy efficiency
At Sukari, 71% of stationary energy consumption is associated
with comminution: the grinding and crushing of rock. Through
various optimisation initiatives, we believe there is opportunity
to fragment particles using less energy than has conventionally
been the case. Other opportunities to improve the energy and fuel
efficiency of our processes include:
-- Development of a fixed plant power management and monitoring
system to optimise energy generation and distribution
-- Conversion to variable frequency drives for pumps and
intermittent rather than continuous operation
-- Utilisation of smaller generators in combination with existing thermal power plant, and
-- Open pit fleet management and haul road optimisation.
SCOPE 3: DECARBONISING OUR SUPPLY CHAIN
Centamin is committed to mitigating the impact of the supply
chain GHG emissions, while recognising that the nature of Scope 3
GHG emissions are largely outside the Company's direct control. The
majority of Scope 3 emissions (98%) are upstream to the Sukari
operation and relate to purchased goods, services and capital
expenditure.
Initial actions are focused on collaboration with the suppliers
to first understand the sources of Scope 3 GHG emissions, then
identify how these can be most effectively abated. Preliminary
studies of Sukari's supply chain indicate that approximately 20 of
the suppliers generate up to 75% of the Scope 3 GHG emissions. The
Company is currently working collaboratively with the key suppliers
to verify the carbon footprint of their value chain and
opportunities for abatement.
Scope 3 GHG emissions are not yet included in our interim target
for carbon abatement. The aim is to set targets for a reduction in
Scope 3 GHG emissions by the end of 2024.
Please refer to Centamin's 2022 Annual Report and Accounts (
link ) for further information on the Company's climate strategy
and climate related disclosures (TCFD).
About Centamin
Centamin is an established gold producer, with premium listings
on the London Stock Exchange and Toronto Stock Exchange. Following
a period of 'reset' including a significant refresh of the Board
and management team, the Company is now entering a growth phase,
balanced with stakeholder returns. The Company's flagship asset is
the Sukari Gold Mine ("Sukari"), Egypt's largest and first modern
gold mine, as well as one of the world's largest producing mines.
Since production began in 2009 Sukari has produced over 5 million
ounces of gold, and today has 6.0Moz in gold Mineral Reserves.
Through its large portfolio of exploration assets in Egypt and Côte
d'Ivoire, Centamin is advancing an active pipeline of future growth
prospects, including the Doropo project in Côte d'Ivoire, and has
over 3,000km(2) of highly prospective exploration ground in Egypt's
Nubian Shield.
Centamin practices responsible mining activities, recognising
its responsibility to deliver operational and financial performance
and create lasting mutual benefit for all stakeholders through good
corporate citizenship, including but not limited to in 2022,
achieving new safety records (8 million hours LTI-free),
commissioning of the largest hybrid solar farm for a gold mine
(Sukari 36MW(DC) solar plant), sustaining a 96% Egyptian workforce
and a 68% Egyptian supply chain at Sukari.
FOR MORE INFORMATION please visit the website www.centamin.com
or contact:
Centamin plc FTI Consulting
Alexandra Barter-Carse, Head of Corporate Ben Brewerton / Sara Powell
Communications / Nick Hennis
investor@centaminplc.c om +442037271000
centamin@fticonsulting.com
------------------------------------------- -----------------------------
Forward-looking Statements
This announcement (including information incorporated by
reference) contains "forward-looking statements" and
"forward-looking information" under applicable securities laws
(collectively, "forward-looking statements"), including statements
with respect to future financial or operating performance. Such
statements include "future-oriented financial information" or
"financial outlook" with respect to prospective financial
performance, financial position, EBITDA, cash flows and other
financial metrics that are based on assumptions about future
economic conditions and courses of action. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expects",
"expected", "budgeted", "forecasts" and "anticipates" and include
production outlook, operating schedules, production profiles,
expansion and expansion plans, efficiency gains, production and
cost guidance, capital expenditure outlook, exploration spend and
other mine plans. Although Centamin believes that the expectations
reflected in such forward-looking statements are reasonable,
Centamin can give no assurance that such expectations will prove to
be correct. Forward-looking statements are prospective in nature
and are not based on historical facts, but rather on current
expectations and projections of the management of Centamin about
future events and are therefore subject to known and unknown risks
and uncertainties which could cause actual results to differ
materially from the future results expressed or implied by the
forward-looking statements. In addition, there are a number of
factors that could cause actual results, performance, achievements
or developments to differ materially from those expressed or
implied by such forward-looking statements; the risks and
uncertainties associated with direct or indirect impacts of
COVID-19 or other pandemic, general business, economic,
competitive, political and social uncertainties; the results of
exploration activities and feasibility studies; assumptions in
economic evaluations which prove to be inaccurate; currency
fluctuations; changes in project parameters; future prices of gold
and other metals; possible variations of ore grade or recovery
rates; accidents, labour disputes and other risks of the mining
industry; climatic conditions; political instability; decisions and
regulatory changes enacted by governmental authorities; delays in
obtaining approvals or financing or completing development or
construction activities; and discovery of archaeological ruins.
Financial outlook and future-ordinated financial information
contained in this news release is based on assumptions about future
events, including economic conditions and proposed courses of
action, based on management's assessment of the relevant
information currently available. Readers are cautioned that any
such financial outlook or future-ordinated financial information
contained or referenced herein may not be appropriate and should
not be used for purposes other than those for which it is disclosed
herein. The Company and its management believe that the prospective
financial information has been prepared on a reasonable basis,
reflecting management's best estimates and judgments at the date
hereof, and represent, to the best of management's knowledge and
opinion, the Company's expected course of action. However, because
this information is highly subjective, it should not be relied on
as necessarily indicative of future results. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information or
statements, particularly in light of the current economic climate
and the significant volatility, the risks and uncertainties
associated with the direct and indirect impacts of COVID-19.
Forward-looking statements contained herein are made as of the date
of this announcement and the Company disclaims any obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Accordingly,
readers should not place undue reliance on forward-looking
statements.
LEI: 213800PDI9G7OUKLPV84
Company No: 109180
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFFFFIVFIAFIV
(END) Dow Jones Newswires
March 30, 2023 02:00 ET (06:00 GMT)
Centamin (LSE:CEY)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Centamin (LSE:CEY)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024