Rame wind to supply Chile gold mine
UK developer Rame Energy will help Cerro Bayo power a gold and silver mine in southern Chile.
The companies have signed a memorandum of understanding (MoU) for Rame to provide the mine with 6.25GWh a year from a 1.8MW, $4m wind farm, to be built on Cerro Bayo's property and expected to be operational next April.
Under the MoU, signed through Rame's wholly owned subsidiary Seawind Holdings, the developer will provide power at an agreed price per MWh to Cerro Bayo for a minimum of five years from the start of commercial operations of the wind farm, then on a rolling one-year contract at Cerro Bayo's option.
The agreement is in line with Rame's strategy to become an independent power producer (IPP) in Chile, says the company, which made its debut on the London Stock Exchange this year.
"This project is the first of a number of off-grid IPP opportunities in wind and solar power we expect to develop. We will look to secure and execute additional power-supply contracts in tandem with the rollout of our wind-power projects in Chile, the first two of which are due to commence operations by the end of 2014," says chief executive Tim Adams.
Santander Investment Chile co-financed those first two projects, the 9MW Raki and 6MW Huajache, and last month signed a $69m agreement to finance its next four wind project in the country, totalling 118MW.