Senex has announced the execution of a gas sales agreement with 29Metals to supply its Capricorn copper mine with around 2.5 PJ of natural gas over three years.
The Capricorn Copper mine is owned by 29 Metals and is located 120 km north of Mount Isa, Queensland.
Senex will supply natural gas from the Diamantina Power Station in Mount Isa, generating the power needed to operate the Capricorn Copper mine.
The three-year agreement will be effective from January 1, 2022, with natural gas prices fixed in line with current market levels.
Terms have also been agreed that can extend gas supply a further two years, up to a potential 4 PJ.
Senex managing director and chief executive officer (CEO) Ian Davies said the company was proud to be supplying another strong regional Queensland customer.
“The Capricorn Copper mine is a critical project in the Queensland Government’s Strategic Blueprint for North West Minerals Province,” Davies said.
“Copper in particular has a large role to play in the production and operation of next generation clean technologies such as electric vehicles, and solar and wind power sectors.”
Davies said that the company looked forward to building another strong, long-term relationship that would support jobs ands help meet Australia’s demands as it transitions to a lower carbon future.
The Capricorn Copper contract is Senex’s second gas sales agreement in the North West Minerals Province following the recent agreement with New Century Resources.
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