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Santos today announced that it has secured two new gas contracts with revenues of more than $60 million to supply mining projects in Western Australia.
Under a five year contract with a subsidiary of Barrick Gold Corporation, one of the world’s leading gold miners, Santos will supply up to 7.3 petajoules (PJ) of gas to their Plutonic operations in central Western Australia. Revenue over the term of the contract is expected to be approximately $55 million, with first gas to be delivered on 1 July 2008.
The second contract is with Jabiru Metals for the supply of 1.7 PJ of gas over five years to their Jaguar copper-zinc project. Revenues of approximately $8 million are expected over the term of the contract, with gas deliveries to commence by mid 2008.
Gas for both contracts will be supplied from the offshore John Brookes field, processed on Varanus Island and then transported to the mine sites via the Goldfields Gas Transmission Pipeline.
“Santos is pleased to be able to meet the energy demands of these mining operations in regional Western Australia,” said Santos’ Managing Director, Mr John Ellice-Flint.
“The continued use of natural gas to power the Western Australia resources industry is strongly supported by Santos, and it is satisfying that the true value of this natural resource, both economic and environmental, is being realised,” he said.