Goldfields joint venture praised for building Kal gas-fired power stn

25/10/96

Energy Minister Colin Barnett has praised the Goldfields Power Joint Venture on becoming one of the first companies to take advantage of the deregulation in the energy sector and build a gas-fired power station in Kalgoorlie.

Mr Barnett was speaking at the official opening today of the 110 megawatt Parkeston Power Station.

Mr Barnett said that the investment by Goldfields Power in the $65 million gas-fired power station in order to sell power to its associated companies and third party consumers was a product of the Government's deregulation of the energy sector.

"Before the Parkeston station, the associated mining operations had their electricity supplied by Western Power," Mr Barnett said.

"As a result of the new power station, energy cost savings of around 10 per cent are anticipated.

"As energy costs are a significant contribution to the expenditure of gold operations, the cheaper electricity is anticipated to have the potential to reduce gold production costs by up to $14 per ounce.

"It is anticipated that an average-sized gold producing company, consuming about five megawatts of electricity, would be able to save around $370,000 per annum on their energy bill by buying electricity from an independent gas-fired generator in the Kalgoorlie area.

"Since deregulation of the energy sector, which involved the encouragement of private sector participation in the provision of electricity and gas, nine new power stations have been constructed or are about to be commissioned.

"In addition, there has been the construction of two gas pipelines, the Goldfields Gas Pipeline and the Karratha-to-Port Hedland pipeline for Pilbara Energy."

Using gas from the newly opened Goldfields Gas Pipeline to generate electricity, Parkeston power station will supply energy to Australia's largest gold mining complex, Kalgoorlie Consolidated Gold Mining's 'super pit', the Kalgoorlie Tailings project (Kaltails) and the Jubilee gold mine south of Kalgoorlie.

"Prior to the construction of the Parkeston station, electricity to the eastern goldfields and to KCGM's operations was supplied by Western Power," Mr Barnett said.

Parkeston Power Station comprises three LM6000 gas turbines, which are in essence modified General Electric engines as fitted to Boeing 747s and adapted to burn natural gas and drive generators.

Site work for the station began in October last year and commissioning began in June using diesel fuel before gas became available in September.

Owned and operated by the Goldfields Power Joint Venture, the new power station is a partnership between subsidiaries of Normandy Mining and TransAlta Energy Corporation of Canada.

Media contact: Justine Whittome, (09) 222 9699