Update on Lihir Gold and its geothermal power plant

Alexander Richter 25 Mar 2009

In its recent Annual Report 2008, Lihir Gold gave an interesting overview over its geothermal power plant. Lihir Gold is an Australian listed firm engaged in the exploration, development and processing of gold assets. The company operates gold mines and processing facilities on the island of Lihir, Papua New Guinea.

In proximity to the gold mine the company operates a geothermal power plant, which provides – according to the company – approximately 75% of the operation’s current power needs, and additionally AU$ 4.5 million in revenues in carbon credit sales. Given that the company in the past used diesel for electricity generation, generating three quarters of its electricity demand through geothermal provides tremendous savings for the company, despite a drop in oil prices has “decreased” the actual savings somewhat.

“The geothermal power capacity on Lihir Island is presently 56 MW (including 20 MW expansion of 2007)”, so the company. “Inconsistent steam supply from some steam wells during the year (of 2008) led to an expanded drilling program to maintain flows to the geothermal power plant. An additional drilling rig will be employed to enable the company to drill deeper wells as part of the exploration program to identify expanded steam field resources.”

Source: The Sydney Morning Herald