Power Generation at Gold Fields -Chimney Creek The Profitable Alternative (c346a3f3-d1f2-4072-a265-76751b3dfe9f)

In 1986, Gold Fields began negotiations with a large Nevada electrical power utility to supply power for its Chimney Creek Mine In northern Nevada. After the long negotiations reached an impass over various costs associated with the power line, a decision was made by Gold Fields to generate its own power. Self-generation is not uncommon overseas, but it is rare for any but very large or very small operations in the United States. Surprisingly, under certain conditions a mine can generate its own power profitably and Gold Fields has found that the associated operating and maintenance problems are minimal. The following report details what factors went into this decision and how it works. Hopefully, it can serve as a guideline for those who may find themselves in a similar position.