Pacific Energy subsidiary Kalgoorlie Power Systems has won a three-year contract to build, own and operate a 3 megawatt power generation facility at Avoca Mining's Chalice gold mine near Kambalda.
The contract, which will commence in September, takes Kalgoorlie Power Systems' contracted electricity generation capacity to 155MW.
It also expands on existing arrangements with Avoca, which is a subsidiary of Canada's Alacer Gold Corporation, under which KPS operates an 11MW power station for the Higginsville gold project.
"Alacer and KPS are also discussing the opportunity to retrofit our exclusive waste heat recovery fuel saving technology to the existing Higginsville power station in order to reduce its fuel consumption and carbon emissions footprint," Pacific Energy managing director Adam Boyd said.
"The proposed carbon tax impost and related diesel fuel excise rebate reduction will further enhance the value of the fuel savings achieved by our waste heat recovery system."
Mr Boyd said the company was continuing to advance new electricity supply negotiations, and would update the market in due course.
At 9:47AM, Pacific Energy's stock was steady at 44 cents.
