"Power generation in the mining industry in Africa is similar to that in much of Australia, with a great many mines not having access to grid power due to their remote locations, and those that are connected to the grid often do not have reliability,” Pacific managing director James Cullen said.
"Pacific Energy's entry to the African market brings over 30 years of Kalgoorlie Power Systems’ experience and expertise in remote power generation and we believe that our build/own/operate model with built in fuel efficiency guarantees will provide an attractive offering to the market", he said.
"Reliability and fuel efficiency are what mining companies want these days and have been the keys to our success in Australia. Africa is no different".
KPS Africa has appointed Ben Zikmundovsky as its executive manager for African operations.
Zikmundovsky is an experienced global resource industry professional with extensive African experience, including establishing GRD Minproc in Africa in 2002.
He has also held senior management positions with such companies as Goldfields and Bechtel and has a strong network throughout Africa.
"I am excited about heading up the new operation in Africa. I see great prospects for the KPS style of business here, not only in new greenfield projects but also in brownfield projects where ageing or inefficient power infrastructure can be improved with a KPS solution. I look forward to speaking with mining companies seeking opportunities to access reliable, fuel efficient power generation,” Zikmundovsky said.
Although Africa produces more than 60 metal and mineral products and has over 30% of the world’s total mineral reserves, it remains relatively under-explored.
There are almost 200 ASX-listed companies with almost 600 mining projects across 38 countries in Africa, many of whom will be familiar with KPS, and there are large number of projects owned by Canadian, UK, South African and multinational companies.
In March the company said it felt the time was right to have a second crack at the African energy market, and it revealed it was already fielding inquiries.
The business has 244 megawatts of contracted capacity in Australia.
The company is under pressure from the improved competitiveness of solar energy, which is attractive to remote mining camps because it can be cheaper and greener, and remote power station providers for mining operations will need to offer a competitive solar component.
Pacific reported a half year profit of $7.3 million, with an operating cashflow of $12.8 million, and it was reducing expenditure.
Net debt was $36.3 million.
