Toronto-listed Allied Gold Corporation has begun rolling out a multi-stage energy programme at its Sadiola mine in Mali, aiming to deliver more efficient, reliable and lower-cost power to support the site’s phased expansion.

The programme will start with the installation of additional state-of-the-art diesel generators and control systems, before moving to a hybrid solution combining medium-speed thermal units with solar PV capacity and battery storage.

“The company is undertaking a staged and scalable approach, initially installing additional state-of-the-art diesel generators and control systems, followed by the implementation of a hybrid power solution, with the deployment of more efficient medium-speed thermal units, and a PV plant with battery energy storage systems (BESS) sufficient to meet the power requirements of the Phase 1 expansion at reduced costs,” Allied says.

From early 2026, Sadiola will progressively replace legacy diesel units with newer generators designed to cut fuel consumption and increase efficiency. Solar and battery systems are scheduled for deployment in 2027, alongside the first wave of thermal units.

The programme is expected to materially reduce operating costs. Allied estimates energy costs will fall by up to 20% with the initial solar plant and battery installation, and by as much as 45% once the full suite of solar, storage and thermal units are in place. This translates into an all-in sustaining cost reduction of between $150/oz and $200/oz of gold.

Allied says the staged implementation was structured to minimise upfront capital. “The new diesel generators, along with the initial PV plant and BESS, are planned to be installed with a deferred payment arrangement, thereby requiring minimal up-front capital,” the company said.

African Power Services has been engaged to deliver the first stage of the project. Allied said the partnership would help it unlock value at Sadiola by providing a cost-effective and scalable power solution, aligned with the mine’s growth profile.

The phased approach is designed to meet the mine’s rising power demand, with Phase 1 expansion requiring 20 MW and Phase 2 projected to need 32 MW. The initial solar facility will provide peak capacity of about 35 MW, paired with a 30 MWh battery system, to supply roughly 40% of Phase 1 demand. Later stages could expand renewables to 60 MW of solar and 45 MWh of storage.

“These investments will secure power for the ongoing needs and future growth at Sadiola, while progressively lowering costs, fuel consumption and carbon intensity of operations,” Allied says.

The Phase 1 expansion of the Sadiola plant is on track for completion in the December quarter. Plant modifications will lift fresh ore processing capacity to 5.7-million tonnes a year, positioning the mine to stabilise output between 200 000 oz/y and 230 000 oz/y ahead of further expansion.