"Mungari could be a welcome development for the region, the development of which has been hampered by limited electricity supply. The nature of the mining operations it would likely supply, however, will also prove a challenge.
Western Power has been under pressure from mining companies looking to develop or restart operations in the Eastern Goldfields region, due to its inability to supply sufficient power, for some years.
The ABC has reported that miner Swan Gold had to fork out $150,000 a month, excluding fuel costs, to rent a diesel generator to supply the power it needs to restart operations at four mine sites.
“We’re sitting there with a 17-megawatt line and we’re getting 1.5-megawatts up it, and it could easily power our entire operation for the next decade, and we can’t get the power,” Swan Gold Executive Chairman Michael Fotios told the ABC."
CCE Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
