CIMIC Group's UGL has been awarded a design and works contract at the Mica Creek solar farm project in Mount Isa, following APA Group's agreement with Mount Isa Mines in December 2021.
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UGL will perform design and construction works at the project comprising of the 88-megawatt Mica Creek solar farm, substation and transmission line for the APA Group.
Last month, APA announced that it would enter into a variation to an existing offtake agreement for the supply of renewable electricity for 15 years with Glencore's MIM.
APA also announced the second stage of works following the initial 44-megawatts from stage one of the Mica Creek solar farm.
UGL managing director Doug Moss said they were a market leader in Australian renewables projects, and in the design and construction of high voltage transmission lines.
"The Mica Creek project will be UGL's third solar project for the APA Group." he said.
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CIMIC Group executive chairman and CEO Juan Santamaria said UGL has deep experience in critical power infrastructure across transmission lines, solar farms and other renewables, and recently completed work on the Victorian Big Battery project in Victoria and the Wallgrove Grid Battery project in NSW.
The development of the Mica Creek solar farm will run in parallel with APA's Diamantina and Thompson stations and will reduce the emissions intensity from APA's entire Mount Isa generation fleet even further, taking it well below the Australian average.
APA has been working with the Queensland Government to support the development of the North West Minerals Province.
However KAP leader Robbie Katter is concerned the APA deals will affect the viability of the proposed CopperString high-voltage transmission line from Townsville to the North West.
"The only ones who seem to be opposed to delivering more competition, better reliability and low prices are the owners of the Diamantina Power Station, who have a vested interested in protecting their profits," Mr Katter said.
"APA holds all the cards in negotiations with mining companies on electricity prices and they've got a reputation for using all their aces.
"If you're a mining company and there is only one supplier who is charging 40% more than your competitors have to pay for electricity, you'd be asking yourself why you'd invest in North West Queensland."
The APA contract with Cimic contract commenced in late 2021 and is expected to be completed in 2023, with both stages of the solar farm expected to be operational by mid-2023.
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