Geothermal energy to power mining

Geothermal or hot rocks energy could power the future needs of South Australia's booming mining sector in the state's north, according to geothermal developer Petratherm.

Petratherm’s managing director Terry Kallis told the Paydirt Resources and Energy Investment Conference in Adelaide that hot rocks energy could eventually provide up to 520 MW of power to mining projects and remote communities.

"Our own Paralana project in the northern Flinders Ranges has the potential capacity to inject large increments of competitive generation supply into mainstream electricity grids," he said.

To deliver its electricity supply, Petratherm proposed transmission lines be built from Paralana to Port Augusta and from Paralana to Olympic Dam, the site of BHP Billiton's major uranium, copper and gold mine.

Kallis said his company remained on track to start producing Australia's first commercially viable geothermal energy at Paralana by mid-2010.

The company will complete the first 4 km deep injection well in the second half of 2008 and the second production well three to six months later.

He said Petratherm would also apply for federal government funding for a second deep well and a grant to develop a 30 megawatt demonstration power plant at Paralana over the next three years.