SolGold PLC, the developer of the flagship Cascabel copper-gold project in northern Ecuador, has signed a Memorandum of Understanding (MOU) with three leading companies to develop a sustainable power project that will deliver about 200 megawatts of clean, renewable energy to the Cascabel site. The partners are Grupo Empresarial Semaica, a major construction company in Ecuador, Enerhydra, an American engineering firm with expertise in hydroelectric projects, and Constructora Nacional, an Ecuadorian construction company with experience in surface work.
The MOU outlines the shared objectives and responsibilities of each party, such as a potential Power Purchase Agreement (PPA), financing arrangements, construction responsibilities, technical aspects, project operation, and the end-user of the generated energy. SolGold will not be directly responsible for financing, building, or operating the power project, but will leverage its position as an end-user to qualify for discounted power rates upon project completion. The partners will also support each other in fundraising efforts from international financial institutions and other global entities specializing in sustainable energy investments.
The power project will utilize hydroelectric and solar power sources, offering significant cost savings and operational efficiency over traditional energy sources. The project will also provide a reliable and consistent power supply, minimizing the risk of disruptions and enhancing operational stability. Moreover, the project will aim to achieve a carbon-neutral footprint, contributing to the global green revolution and positioning Cascabel as one of the world’s largest copper-gold mines with a commitment to environmental stewardship.
The project will also have a positive impact on the local communities surrounding Cascabel, through job creation, skill development, and infrastructure improvements. The partners will actively engage with local communities, government agencies, and environmental organizations in the project’s planning and implementation, ensuring that the project is developed responsibly, ethically, and in cooperation with all stakeholders.
The partners expressed their enthusiasm and dedication to the project, highlighting the benefits for Ecuador’s energy security, economic growth, and social development. The MOU sets the stage for further technical assessments and progress toward a more definitive agreement, while concurrently advancing Cascabel.