The shutdown of BHP’s nickel operations has had a silver lining for Kalgoorlie, with Canadian company TransAlta contracted to supply back-up power to the city.
The shutdown of BHP’s nickel operations has had a silver lining for Kalgoorlie, with Canadian company TransAlta contracted to supply back-up power to the city.
TransAlta has been a major supplier of energy to BHP’s nickel mines, which were put on care and maintenance this year.
Having lost its major customer, TransAlta has had the good fortune to secure a new contract for Kalgoorlie-Boulder, which has been hit by multiple power outages over recent years.
TransAlta is expected to be paid tens of millions of dollars under the contract.
The deal comes as Western Power proceeds with procurement for up to 150 megawatts of new back-up generation for the city.
Energy minister Reece Whitby said the deal followed months of negotiations between the state government and energy producers in the Goldfields.
“This arrangement with TransAlta is an effective way of providing significantly more security to Kalgoorlie families as we continue to seek additional, permanent back-up generation for the Goldfields,” Mr Whitby said.
TransAlta Australia managing director Robert Millard welcomed the agreement.
“We were pleased to be able to contribute to Kalgoorlie’s restoration back in January, and we are pleased once again to be in a position to contribute to reliability for the Goldfields going forward," Mr Millard said.
“With BHP Nickel West’s operations temporarily suspended, our Southern Cross Energy facilities will be re-directed to provide reliable back-up generation for the region.
"It’s a tremendous example of creative problem-solving and strong collaboration, and we are proud to be a part of this solution for the Goldfields.”
TransAlta was one of three energy producers affected by BHP’s nickel shutdown, which will be reviewed in 2027.
It has a 16-year offtake agreement with BHP to supply power to the Mt Keith and Leinster mines.
It was seeking EPA approvals this year for a 150MW gas-fuelled power station to support processing at Mount Keith.
Risen Energy, which owns the 100MW Merredin solar farm, was contracted in 2021 to supply power to BHP’s Kwinana nickel refinery.
Enel Green Power, which owns the recently completed Flat Rocks wind farm near Kojonup, was contracted in 2022 to supply BHP’s Kalgoorlie smelter and Kambalda concentrator.
The government said today its arrangement with TransAlta followed improvements in operations and protocols for the 220-kilovolt line servicing Kalgoorlie and the West Kalgoorlie Power Station.
It added that Western Power has invested nearly $130 million since 2021 in local network infrastructure and technology.
