Mercator Gold (LON:MCR), the AIM listed diversified mining investment company with a broad range of interests across the world, including Australia, Indonesia, Thailand and the USA, has announced it is tapping into the New Mexico sun through constructing a solar power plant.
Through its subsidiary Warm Springs Renewable Energy Corporation, Mercator with a 70% stake has entered into agreement with Remote Energy Solutions, an established renewable energy developer to develop the Warm Springs solar power project in New Mexico. Remote Energy will lead the permitting and development for the project which is initially targeting the construction of a 20MW solar power plant, with the potential to increase over a period of time to 80MW. [1]
The solar power project could be a winner for the company as the demand for renewable sources of electricity in the USA is expected to increase considerably under the Renewable Performance Standard regulations, which is targeted towards the utilities and their energy sourcing. The recent highly publicised BP (LON:BP.) disaster in the Gulf of Mexico and the turmoil it has caused will once again reiterate the importance on focusing on clean renewable sources of energy in the US, who have designated New Mexico as a hub for the power grid.
The Solar Power Plant is to be developed in close proximity to another Mercator asset which is the Copper Flat project which will benefit through association and efficiencies. Another Mercator asset in line to benefit is ACS Asia of which Mercator holds a 70% interest through the supplying of steel used for construction which is estimated to account for 20-40% of the production costs. [2] Commenting on the renewable energy project Patrick Harford, Managing Director, noted:
“Copper Flat will have a genuine claim to be considered one of the most environmentally sustainable mines in the world on the basis of its association with the Warm Springs project. Besides complementing the Copper Flat permitting process, the Warm Springs project is projected to be highly profitable in its own right, and the involvement of ACS Asia has the potential to aid the growth of that business substantially.” [1]
With construction costs of a 20MW solar power plant in New Mexico estimated to be in the region of US$60-80 million, and funding likely to come via, grants, project debt and equity…
