Ivanhoe Mines Ltd. T.IVN

Ivanhoe's solar power plant...

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Ivanhoe Mines Ltd. (TSX: IVN, Forum) has secured options to use solar power with liquefied natural gas to power its Platreef Project in South Africa.

Construction of Ivanhoe’s first solar power plant at the Platreef Mine is set to begin by April 2022. The initial five-megawatt (MW plant is expected to begin supplying solar-generated electricity to the mine in early 2023.

Design and engineering of the initial solar plant at the Platreef Mine are complete and construction is set to commence next month. The solar-generated power from this initial plant will be used for mine development and construction activities, as well as for charging Platreef’s battery-powered underground mining fleet, further reducing carbon dioxide emissions.

Construction is progressing at the Platreef Mine and initial production is expected from the first phase of operations in Q3 2024. Ivanhoe expects the Platreef Mine to require approximately 30 MW of installed electrical power for its Phase 1 operations, and approximately 100 MW for its Phase 2 operations at full production.

Ivanhoe Mines indirectly owns 64% of the Platreef Project through its subsidiary, Ivanplats, and is directing all mine development work.

In other news, Ivanplats recently acquired the exclusive right to negotiate an offtake agreement with South Africa-based Renergen Ltd. for electricity generated from Renergen’s gas and solar hybrid-power facility to be constructed at the Virginia Gas Project.

Ivanhoe is confident that through the two companies they will be able to provide Platreef with an uninterruptible power supply to meet the mine’s base-load requirements.

Renergen is an emerging producer of helium, energy and liquified natural gas with near-term production and sales of compressed natural gas and helium from its Virginia Gas Project.

Ivanhoe has made an initial equity investment in Renergen of approximately $13 million (USD), which gives Ivanhoe an approximate 4.35% interest in issued and outstanding shares. It has the option to eventually subscribe up 55% of Renergen to provide equity funding for Phase 2 at the Virginia Gas Project.