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

Senior Contributing 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

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/11/2024)
15th November 2024 By: Martin Creamer
Magazine round up | 15 November 2024
Magazine round up | 15 November 2024
15th November 2024

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:4.163 4.241s - 129pq - 2rq
Subscribe Now