Senex hits the gas for Qld copper mine
Friday, 24 September 2021
The Queensland Resources Council (QRC) has welcomed today’s news that Senex Energy has entered into a gas sales agreement to provide around 2.5 petajoules (PJ) of natural gas to the Capricorn Copper mine, owned by resources company 29Metals Limited.
An initial three-year agreement to deliver natural gas at a fixed price has been signed which trails hard on the heels of Senex’s gas supply to another Queensland mine, following the recent supply agreement with zinc concentrate producer New Century Resources.
Natural gas is to be supplied by Senex to the Diamantina Power Station, owned and operated by APA Group in Mount Isa, generating the power required to operate the Capricorn Copper mine.
QRC Chief Executive Ian Macfarlane said the announcement is great news for Queensland and for Senex, which supplies the equivalent of 10 per cent of Queensland’s gas demand.
“Senex Energy’s gas offer is essential to support Metal29’s ongoing production and yet another practical demonstration of the Queensland Government’s domestic gas policy delivering results,” Mr Macfarlane said.
“Senex are an excellent example of a Queensland resources company that’s focused on building long-term and mutually beneficial partnerships.”
“Both companies will contribute significant royalties to the state government, which go straight into the state budget to fund essential government services.
“By helping to keep Metal29’s products competitive, Senex is helping to create jobs in Gulf Country communities like Gunpowder – proving that Queenslanders can count on the resources industry to help Qld recover from Covid-19.
Senex has now signed around 80 PJ of agreements with domestic customers including Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.