https://newsletter.mw.creamermedia.com
Business|Generator|Generator Sets|Generator-Sets|Gold|Mining|Power|Projects|Service|Services|Technology|Equipment|Generator Sets|Maintenance|Generator Sets|Operations
Business|Generator|Generator Sets|Generator-Sets|Gold|Mining|Power|Projects|Service|Services|Technology|Equipment|Generator Sets|Maintenance|Generator Sets|Operations
business|generator|generator-sets|generator-sets-company|gold|mining|power|projects|service|services|technology|equipment|generator-sets-industry-term|maintenance|generator-sets-person|operations

Wärtsilä signs ten-year service agreement for 170 MW power plant at PNG mine

4th January 2021

By: Tasneem Bulbulia

Deputy Editor Online

     

Font size: - +

Technology group Wärtsilä has signed a ten-year tailored guaranteed asset performance agreement covering power plant maintenance and operations advisory services for Newcrest Mining's Lihir gold mine. 

The mine is located on Lihir Island in Papua New Guinea.

The agreement has shared business case incentives, based on key performance indicators (KPIs), which reduce operational cost and enhance power availability, supporting the mine’s production targets.

The ten-year agreement, worth over €150-million, was signed in October and it is targeted to take effect from the end of the first quarter this year.

The expected revenues for 24 months, about €20-million, have been included in Wärtsilä’s order book for the fourth quarter of 2020.

The 170 MW power plant provides a critical electricity supply to run the operations of the mine, Wärtsilä noted.

The incentivised KPIs are slated to lead to an increase in revenue and a reduction in operational cost.

Moreover, the partnership enables Newcrest to focus on gold production at Lihir, while Wärtsilä takes care of optimising the power plant performance. The agreement will also provide the customer with maintenance and parts cost predictability, including a reduction in working capital.

The agreement includes full technical support, real-time monitoring of the equipment from Wärtsilä’s Expertise Centres, condition-based maintenance and asset diagnostic reporting, operational advisory support, as well as all planned and unplanned maintenance of the generator sets and auxiliaries.

The agreement KPIs with shared incentives are based on fuel and oil consumption and power availability. The KPIs can be adjusted by mutual agreement during the agreement period, should the market change.

The total installed base of Wärtsilä’s power generating equipment in a number of projects in Papua New Guinea is 381 MW, of which 170 MW has been supplying power to Lihir Gold.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Latest News

Showroom

Kriel Occupational Health Centre
Kriel Occupational Health Centre

Occupational health services, mobile clinics, wellness campaigns, aviation.

VISIT SHOWROOM 
Roytec Global (Pty) Ltd
Roytec Global (Pty) Ltd

Roytec Global is an international company specializing in liquid / solid and mineral separation technologies for the Mining and Industrial sectors.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

FAM Minerals & Mining South Africa team
FAM Minerals & Mining launches in South Africa
30th January 2026 By: Darren Parker
Transnet, RBCT, Exxaro manganese make headlines
Transnet, RBCT, Exxaro manganese make headlines
30th January 2026
Magazine cover image
Magazine round up | 30 January 2026
30th January 2026
Exxaro CEO Ben Magara.
Exxaro’s manganese entry points advance
29th January 2026 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.116 0.2s - 130pq - 2rq
Subscribe Now