Pacific signs contract with Capricorn

Pacific Energy has announced it will partner with Capricorn Metals to develop a gas-fuelled power station for its Karlawinda gold project in the Pilbara region.

That project, acquired by Capricorn in 2016, has an estimated cost of $155 million, and is expected to produce 105,000-120,000 ounces per annum over eight-and-a-half years once commenced.

Under the contract, Pacific subsidiary Contract Power will build, own and operate a 16mw power station for the project; using Cummins HSK78G gas generators to deliver what the company has said will be low-cost, low-emissions energy.

According to Pacific, that contract will last for an initial period of eight years commencing from March 2021.

Pacific chief executive James Cullen said the company was looking forward to contributing to the energy component of the Karlawinda project.

“We offered a compelling, value for money clean energy solution and are grateful for the award of this contract by Capricorn Metals,” Mr Cullen said.

Pacific Energy was formerly listed on the ASX before being acquired by Queensland-based investment firm QIC for $470 million this past November.

In May, Pacific announced it would acquire Kewdale-based Hybrid Systems Australia, however it did not disclose the value of that acquisition at the time.