Canada’s Dynacor Mines Inc. has signed an agreement with Emerging Power Developers Ltd. to develop the hydroelectric potential of the Pelagatos River to supply Dynacor’s Pasto Bueno mine in northern Peru.
Dynacor said the agreement is a joint venture with Emerging Power, which is controlled by Swiss consulting firm Stucky SA and Peruvian hydro developer Electrokraft SA.
�Dynacor’s first goal is to ensure long term and sufficient energy supply to its Pasto Bueno tungsten mill,� the company said. �This guaranteed supply will allow us to increase mine operations when need arises.�
The company said it also plans to control and eventually reduce operational costs by controlling and lowering energy expenditures. It said it also will be able to benefit from the new carbon credit market under the Kyoto agreement to stem climate change.
�Dynacor’s third target is to have the possibility to be part of future hydroelectric projects that could be developed by the new joint venture company,� it said.
Dynacor said a new company will be created to finance, develop, and operate the hydroelectric projects. At first Emerging Power Developers is to hold 51 percent of the company, with Dynacor holding 44 percent and Electrokraft 5 percent.