Geodynamics takes first step on exploration for Vanuatu project

This morning, Australian Geodynamics has reported that it has signed an agreement with the Takara Community on Efate Island in Vanuatu to commence the first stage of its Takara geothermal power project.

The agreement enables the first stages of the exploration phase of the Takara Geothermal Power Project to commence. The project has been taken over by Geodynamics as part of its acquisition of KUTh Energy in December 2013.

“At a signing ceremony attended by the Ni-Vanuatu Prime Minister Moana Carcasses, the High Commissioners of Australia and New Zealand, the CEO of the Utilities Regulatory Authority, the Reserve Bank Governor, as well as Geodynamics’ CEO Geoff Ward, it was agreed that the Company would commence an independent Environmental and Social Impact Assessment (ESIA), community mapping and land valuation works.

The ESIA is an important part of exploration planning, and will assess any potential environmental and social impacts of the Project’s proposed exploration activities. Community consultations during the ESIA will also enable the kastom (traditional) owners and land users to raise any concerns and questions in relation to the project.

Geodynamics CEO Geoff Ward thanked the Prime Minister and the Geothermal Taskforce for their efforts in promoting the development of geothermal projects in Vanuatu stating, “The signing of this agreement is an important step towards the development of Vanuatu’s geothermal resource. I would also like to extend my gratitude to all the Chiefs and community representatives from Takara and the surrounding area, who attended the signing ceremony agreeing to the commencement of these studies.”

“We look forward to continuing our engagement with the kastom owners and community, as well as the Government of Vanuatu as we go forward. A key priority for us is to ensure that all parties are kept informed and engaged with the development and exploration progress. Successful co-operation between the kastom owners, the Vanuatu Government and Geodynamics will ensure that all parties benefit from the project.”

Prime Minister Carcasses highlighted the importance of the agreement commenting that, “The development of Vanuatu’s geothermal resource is a Government policy priority and central to the National Energy Road Map recommendations. This is a project of national importance and key to our economic development.”

Prime Minister Carcasses also praised and thanked community members stating that, “The future development of Vanuatu depends on the close partnership of kastom owners, government and private industry. This agreement shows how that development can be done”.

KUTh Energy Vanuatu, a wholly owned subsidiary of Geodynamics, holds a 30 year Production Licence with exclusive rights to develop geothermal
energy from an identified prospective geothermal area located on the north of the main island of Efate.

The Project has potential to supply cheaper and more reliable power to the expanding Efate network than current diesel generation. The resource at Takara has been investigated using surface based geoscientific methods, including geology, geochemistry and geophysics. The development is planned to be progressed in two stages of 4 MWe for 8 MWe in total.

Exploration drilling to confirm the resource is targeted for mid 2014, with production drilling and plant construction set for 2015, given successful exploration results this year.”

Source: Geodynamics release (pdf)