Allied Gold Unveils Energy Strategy for Sadiola Expansion Aimed at Cost Reduction and Efficiency

Allied Gold's Innovative Energy Program at Sadiola



Allied Gold Corporation has recently announced the initiation of a revolutionary energy program at its Sadiola gold mining site. This decision comes after thorough assessments of power requirements necessary for both current operations and anticipated expansions. With a vision to enhance sustainability and reduce costs, Allied has opted for a phased approach in upgrading energy sources.

Overview of the Energy Strategy


The cornerstone of Allied's energy strategy is the installation of advanced diesel generators and sophisticated control mechanisms, coupled with a hybrid power model. The first phase will feature the deployment of medium-speed thermal units and a photovoltaic plant, supported by battery energy storage systems (BESS). This innovation is projected to fulfill the energy demands for Sadiola’s Phase 1 expansion while significantly driving down costs. The planned approach not only caters to immediate needs but is also scalable for future growth.

Starting from early 2026, the Sadiola site will begin transitioning from older diesel generators to cutting-edge units that promise enhanced fuel efficiency and power output. By mid-2027, Allied anticipates adding a photovoltaic plant that is set to reduce energy expenses by up to 20%. Further expansions in solar capacity and the integration of medium-speed thermal generators are expected to culminate in cost reductions of as much as 45%. This will ultimately lead to lower all-in sustaining costs for gold production, beneficially impacting the company’s bottom line.

Phased Implementation for Greater Reliability


The energy requirement has been specifically identified at 20MW for phase one and projected to rise to 32MW for phase two. With careful planning, Allied aims to effectively manage capital outlay through structured financing methods, which will mitigate short-term cash flow impacts. The first phase of the program includes expanding the diesel generation capability by 14MW, with the expectation of completion in early 2026. Following this, further solar installations and BESS will be executed to supply nearly 40% of the energy needs for the initial phase.

The subsequent stage brings in medium-speed thermal generation, expected to reduce operating costs while simultaneously boosting efficiency. Such a robust energy generation capacity ensures that Allied Gold can support its mining operations without overtaxing Mali's grid infrastructure.

The Role of African Power Services


To ensure effective execution of this ambitious energy program, Allied has partnered with African Power Services (APS). This collaboration underscores Allied's commitment to harnessing renewable energy technologies that are sustainable, efficient, and tailored for the mining sector. APS brings a wealth of experience in developing hybrid energy solutions across Africa, thereby aligning with Allied's goal of decreasing operational expenses and reducing carbon footprint.

The emphasis on utilizing renewable energy not only aligns with global trends towards sustainability but also represents a key operational metric for stakeholders concerned with Environmental, Social, and Governance (ESG) factors. Through rigorous planning and execution, Allied aims to enhance its operational efficiencies while adhering to sustainable practice standards.

Conclusion


The Sadiola expansion is well on track, with the first phase expected to be completed in the fourth quarter of 2025. This program positions Allied Gold as a forward-thinking player in the mining industry, prepared to tackle energy efficiency head-on while realizing production objectives. As the landscape evolves, maintaining a reliable, independent, and clean power supply will be crucial to the ongoing success and expansion of the Sadiola project and beyond. Therefore, Allied's energy initiative is not just a project; it’s a pathway towards operational excellence, sustainability, and long-term growth in a dynamic market.

Topics Energy)

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