FSC to sell electricity to Vatukoula gold mine
March 5, 2012 8:14 pm
The Fiji Sugar Corporation is partnering with the Vatukoula Goldmine Limited for a co-generation project that would see massive savings for VGL’s electricity costs.
FSC Executive Chair Abdul Khan says FSC will sell electricity to VGL at a much lower price, which in turn, will reduce the total costs of gold production for the company.
The main reason that Vatukoula is coming in with us, is their cost of electricity is roughly around fifty cents a unit. We will be selling it to them at twenty three cents a unit which reduces the electricity cost by fifty per cent, and their overall cost of production of gold by twenty five per cent because fifty percent of their cost is actually electricity.
The $180m project will be funded by London investors through arrangements with VGL.
Khan says the project will provide the FSC up to $45m in revenue per year.