Invictus Energy Seals Gas Sales Agreement To Power Eureka Gold Mine
Invictus Energy Limited has signed a memorandum of understanding (MoU) with mine operator Dallaglio Investments and power generation firm Himoinsa Southern Africa Proprietary for a gas-to-power project in Zimbabwe. The project will generate electricity to power operations at the Eureka Gold Mine – one of the country’s largest.
Under the partnership, gas extracted from the Cabora Bassa Project will fuel operations at Eureka – located 50km from the Mukuyu-2 wellsite.
The power generation facility, speared by Himoinsa, is anticipated to commence with an initial capacity of 12MW, expandable to 50MW.
Eureka mine currently relies on diesel-fired power as a backup energy source, and the transition towards gas-fired power promises a more dependable and environmentally friendly energy supply for the mine.
It will also facilitate data collection crucial for optimizing full-field development planning and determining resource volumes and locations.
The MoU provides flexibility for incremental project growth and additional power off-take agreements, with feasibility studies underway to identify the most optimal power delivery method for Eureka.
The study will explore whether on-site generation or utilizing the existing grid infrastructure located 5km away coupled with wellsite power generation is the most strategic method.
Upon completion of the feasibility study, Invictus Energy and Himoinsa aim to formalize a binding Gas Sale and Purchase Agreement, ensuring the provision of natural gas for power generation and subsequent electricity supply to Dallaglio at Eureka under mutually beneficial terms.
Beyond Zimbabwe, the electricity generated from this project holds the potential to serve other private off-takers through local grids or via the Southern Africa Power Pool (SAPP) – a regional integrated power network.
As energy demand escalates across the continent, initiatives like this demonstrate the feasibility of leveraging indigenous energy resources to meet rising electricity needs.
Invictus Energy has already signed a gas supply deal with Zimbabwe’s Mbuyu Energy, with a 500MW power project on the cards.
The recent confirmation of the Mukuyu gas-condensate discovery at the Cabora Bassa Project has further catalyzed Invictus Energy’s efforts towards early monetization strategies and expedited production timelines.
The high-quality natural gas found at Mukuyu-2 is expected to facilitate a streamlined early production system, minimizing infrastructure requirements and paving the way for future full-field developments.
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), which represents the voice of the African energy sector, said:
This initiative represents a step forward for Zimbabwe’s energy sector and the gold mining industry, aligning with the country’s vision for sustainable energy development.
It underscores the potential of African nations to leverage indigenous resources for sustainable development, unlocking new opportunities for economic growth and energy security in Zimbabwe and the broader African region.
Zimbabwe’s strides in gas-to-power initiatives can serve as a blueprint for other Southern African nations seeking to fortify energy security and drive economic growth through sustainable energy solutions.
With gold being one of the country’s biggest export commodities, securing a sustainable supply of electricity will help bolster production and broader economic growth.
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