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    Senex signs gas deal with Australian miner

Summary

Senex will supply around 2.5 petajoules of natural gas over three years to Capricorn copper mine, owned by Australian resources company 29Metals.

by: Shardul Sharma

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Senex signs gas deal with Australian miner

Sydney-listed Senex Energy has signed an agreement to supply natural gas to Capricorn copper mine, owned by Australian resources company 29Metals, it said on September 24.

Senex will supply around 2.5 petajoules (PJ) of natural gas over three years at a fixed price, in line with current market levels, the company said. The Capricorn mine is located approximately 120 km north of Mount Isa, Queensland. Natural gas is to be supplied by Senex at the Diamantina power station in Mount Isa, generating the power required to operate the mine. Terms have also been agreed that can extend gas supply a further two years which would increase sales up to around 4 PJ.

“Senex looks forward to building another strong, long-term and mutually beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower-carbon future,” Senex Managing CEO Ian Davies said.

The Capricorn contract is Senex’s second gas sales agreement in the North West Minerals Province following the recent supply agreement with zinc concentrate producer New Century Resources. Senex has signed around 80 PJ of agreements with domestic customers including Adbri, CleanCo Queensland, CSR Building Products, Opal, Orora and Visy Glass.