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A diesel plant with the capacity to generate 90 megawatts (MW) of energy is being set up at Chirano in the Western Region by Genser Energy Ghana Limited to power some mining companies in the country.

Kinross and Endeavour which are mining institutions are among those expected to benefit from the plant when operations begin.

The Minister of Lands and Natural Resources, Nii Osah Mills made this known at this year’s Mining Indaba conference in Cape Town, South Africa.

Graphiconline reporter, Sebastian Syme who is attending the conference reported that the Minister who was among a panel of discussants addressing delegates stated that the plant was to help improve the operations of the mining sector.

He was speaking on the topic “The Power of the Mine: A transformative opportunity for Sub-Saharan Africa.”

Nii Mills indicated that excess power from the 90MW plant would be fed into the national grid in line with the government’s programme to improve the energy capacity of the country.

In 2007, during a similar energy challenges in Ghana, four mining companies, Newmont Ghana Limited, Ashanti Goldfields, AngloGold Ashanti and Golden Star Resources set up 80 megawatts energy plant to serve into the mining sector.

Conference
The Investing in African Mining Indaba conference which is arguably the largest mining investment event in the world has brought together about 7,000 delegates from across the world to discuss investments and opportunities available in the mining industry.

The minister who led the government delegation to the event is accompanied by the Chief Director of the Ministry, Prof. Bruce Banoeng-Yakubu, the Chief Executive Officer of the Minerals Commission, Dr Tony Aubynn and other officials.

Newmont Ghana Gold Limited is also represented at the conference.

Akosombo-VALCO
Responding to Ghana’s energy situation as it pertained to the relationship between the defunct Volta Aluminium Company (VALCO) and the Akosombo Dam, Nii Mills told the delegates that VALCO needed about 600 MW to operate and that its demand rose to 1,200 MW compelling the company to shut down in order for the Akosombo Dam to generate enough power to meet the needs of the country.

Touching on the current energy challenges in the country, the minister encouraged private sector participation in power delivery and noted the fact that the country had retained the mining companies in view of their healthy relationship and honest relationship existing between them and the government.

The Chief Executive Officer of Randgold Resources, Mr Mark Bristow, who also contributed to the discussion, lauded Ghana for making strides in the mining sector.