Invictus looks to the future with MoU to supply gas to Eureka gold mine

Transition: Himoinsa's 12MW diesel plant at Eureka Mine

Invictus Energy has signed a Memorandum of Understanding with gold producer Dallaglio that could see energy company Himoinsa building a gas-to-power plant to supply the Eureka Gold Mine.

Under the MoU, Himoinsa would build a 12MW power plant for Eureka, which can be scaled up to 50MW.

“Following recent confirmation of the Mukuyu gas-condensate discovery at the Cabora Bassa Project, Invictus is positioning itself to capture early monetisation opportunities and accelerate timelines to first production and revenue generation,” Invictus says in a statement on Tuesday.

The companies will assess the best way to deliver the gas to the mine; either generating the power at Mukuyu and then wheeling it to Eureka, or building the plant at the mine and delivering the gas via truck. Eureka is 50 km away from the Invictus gas field. Power generated would be supplied to Eureka or other private off-takers through the local grid or into the Southern Africa Power Pool if excess supply is available.

Invictus MD Scott Macmillan said: “Eureka’s close proximity to Mukuyu and available infrastructure make this an ideal pilot project and provides us with line of sight to early first production, revenue generation and proof of concept for future full field developments and large-scale gas-to-power projects”.

Himoinsa, a unit of Japanese power company Yanmar, already provides diesel power generation to Eureka and Dallaglio’s other mining operations in Zimbabwe. Dallaglio says it wants to move from diesel to gas as it expands Eureka, where a 7MW solar plant is also being built.

“Substituting coal and diesel-fired power for natural gas supports our goal as a long-term sustainable gold producer and will significantly reduce our emissions profile,” Dallaglio CEO James Beare says.

The MoU is the latest of several agreements that Invictus has signed with potential gas buyers. By securing potential off-takers for the gas it may produce, Invictus is making itself more attractive to potential financiers. Last year, Invictus and partner One Gas Resources signed a gas supply MoU with Mbuyu Energy, a consortium of Zimbabwean businesses that includes Tatanga Energy. Invictus also has an MoU to supply gas to Sable Chemicals, the country’s sole ammonium nitrate producer.