Bellevue Gold has inked a deal to refine its gold with independent ABC Refinery alongside an agreement with Zenith Energy to build a hybrid power station at its namesake project.
Bellevue Gold has inked a deal to refine its gold with independent ABC Refinery alongside an agreement with Zenith Energy to build a hybrid power station at its namesake project in the Goldfields.
The ASX-listed aspiring gold miner released an update to the market detailing two deals ahead of its Bellevue Gold project reaching expected first production in the second half of the 2023 calendar year.
Construction is well underway at the project, which Bellevue hopes will achieve net-zero greenhouse gas emissions by 2026.
In an announcement on the ASX, Bellevue announced it signed a binding power purchase agreement with Zenith Energy.
Under the deal, the Belmont-based power supplier will finance, build, own, operate and maintain an 88-megawatt hybrid power station at the project for an initial term of 15 years.
The gold developer has commenced earthwork and foundation construction for the off-grid hybrid power station, which will utilise a combination of wind and solar as well as thermal generation and battery energy storage.
The hybrid power station is expected to help meet Bellevue’s goal of using renewable energy for up to 80 per cent of the project’s power requirements to meet its net-zero ambition and help reduce costs.
“Furthermore, the hybrid power solution will allow the project to operate on 100 per cent renewable energy and seamlessly switch to an 'engine-off' mode during periods of high renewable energy generation,” Zenith Energy said in a statement.
Bellevue managing director Darren Stralow said the power purchase agreement was another key milestone on the path to gold production later this year.
“The high utilization of renewable energy availability is central to our goal to be Australia’s first net-zero gold producer,” he said.
“As well as being environmentally responsible, this approach could see Bellevue receive a premium price for its gold.”
A similar 95-megawatt power station is being constructed by Zenith at Liontown Resources’ Kathleen Valley lithium project 15 kilometers north of Bellevue’s project.
Zenith chief executive Hamish Moffat said the company would apply its expertise in hybrid renewable power stations and ESG action to facilitate Bellevue's achievement of its sustainability objectives.
“The signing of the power purchase agreement with Bellevue Gold marks a partnership that will continue industry leading decarbonisation, while also further developing the recently announced Tjiwarl Katu Power joint venture between Zenith Energy and Tjiwarl Contracting Services the wholly owned entity of Tjiwarl Aboriginal Corporation – the traditional owners and native title holders of the land on which Bellevue Gold is located,” he said.
Bellevue also announced it had executed a refining agreement with Australia’s second-biggest gold refiner ABC Refinery.
The gold hopeful chose the independent refiner over The Perth Mint, which holds the largest share of the gold production market.
Bellevue said the refining agreement provided a pathway in which its gold could be refined separately.
“This will enable Bellevue’s gold to be marketed as a ‘green’ product, reflecting its net-zero status, which will in turn open the door to Bellevue potentially receiving a premium price for its gold," Bellevue said.
On the ASX, Bellevue shares were down 0.63 per cent to trade at $1.27 at 3:38PM AEST.
