PhilGold Processing & Refining Corporation
PhilGold Processing & Refining Corporation

Reference case

Reliable and efficient energy for a remote gold mine with custom operation solutions

PhilGold Processing & Refining Corporation (PGPRC) owns and operates the Masbate Gold Project (MGP), a gold mine on the remote island of Masbate in the Philippines. Due to its isolated location, the mine relies entirely on its own power generation. Ensuring a consistent and reliable power supply is critical to maintaining continuous mining operations. To achieve this, PGPRC partnered with Wärtsilä in 2009, allowing PGPRC to focus on their production targets while Wärtsilä manages the power generation.

Challenging environment

The Masbate mine, operating on 7 Wärtsilä engines with a total output of 47 MW, is located approximately 360 km southeast of Manila with no connection to the national grid, making the island-mode plant the sole provider of energy to the mine. This energy independency makes it critical to have a reliable power plant supplying energy for the mine at all times.  

Continuing partnership

Since 2009, Wärtsilä has been responsible for guaranteeing power availability and reliability at the Masbate mine, ensuring efficient operations of the power plant. The partnership has resulted in significant savings in both fuel and operating costs for PGPRC, along with reduced emissions.

Under the original Operation and Maintenance (O&M) agreement, Wärtsilä provided extensive technical support and maintenance services, ensuring the plant’s availability and reliability. Over the years, the agreement scope has been customised to meet PGPRC's evolving needs. The tailored agreement includes performance guarantees covering heat rate and annual availability, providing peace of mind to PGPRC and allowing them to concentrate on their core business.

In June 2019, Wärtsilä signed a four-year extension to the O&M agreement, further cementing the long-term relationship with PGPRC.

“Since 2009, Wärtsilä has operated and maintained our power plant, which has freed us up to concentrate on our main business of mining. They have carried out this work with the utmost efficiency and have tailored the agreement to meet our specific needs and wishes. We are very satisfied with Wärtsilä’s performance,” stated Eugene Occena, Process Plant Manager for PGPRC.

In June 2023, Wärtsilä renewed its O&M agreement for another five years. This extension emphasises the importance of power supply reliability for PGPRC's operations.

Wärtsilä has extensive experience in providing power to mining operations globally, often in challenging environments. Our engine technology is designed to perform efficiently in high ambient temperatures and with limited cooling water supplies. With Wärtsilä’s Lifecycle Solutions, PGPRC as well as other mining companies can benefit from reliable, efficient and cost-effective power that reduces the environmental impact of the operations throughout the installation lifecycle. The maintenance agreements are customised to meet the specific needs of each customer, ensuring maximum efficiency and reliability.

WhoPhilGold Processing & Refining Corporation (PGPRC)
WhatGas engine power plant
WhereThe Philippines
HowO&M agreement for optimised operation and guaranteed performance

This is what we achieved

47

MW of maximum electrical output with 7 Wärtsilä engines

14+

years of Wärtsilä operating and maintaining the power plant

The plant’s availability, efficiency, and reliability are critical to our operations. Wärtsilä has provided the professional support to ensure that we get the power we need for the past fourteen years, so it was natural that we continue this agreement.

 

Ryan Rusk, President at PhilGold Processing & Refining Corporation

How we did it

Challenge icon

Challenge

  • Ensuring a reliable electricity supply in a remote location with no grid connection
  • Maintaining high power generation availability and optimised operational expenditure (OPEX)
Solution icon

Solution

  • Utilising Wärtsilä’s proven engine technology designed for high ambient temperatures and limited water supplies
  • Implementing a tailored O&M agreement with performance guarantees for heat rate and annual availability
Benefit icon

Benefit

  • Reliable power supply ensuring uninterrupted mining operations
  • Significant savings in fuel and operating costs, while producing less emissions through efficient power generation

The main details

CustomerPhilGold Processing & Refining Corporation (PGPRC)
LocationThe Philippines
TypeIndustrial self-generation power plant with 7 Wärtsilä engines producing 47 MW
Operating modeBaseload
FuelHFO
Lifecycle solution14+ year operation and maintenance  agreement, originally signed in 2009
PGPRC - Masbate Gold Project

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