Xin Lang Cai Jing·2025-12-09 13:41Summary of Key Points Core Viewpoint - The company, Zhaojin International Gold Co., Ltd., has signed a power purchase framework agreement with Shenzhen Energy Group to develop a solar and storage microgrid project at the Vatukoula gold mine in Fiji, aiming to reduce costs and emissions while utilizing local solar resources [1][2][29]. Group 1: Agreement Overview - The framework agreement is intended to establish a cooperative intention between the parties and is not legally binding until a formal power purchase agreement is signed [4][41]. - The project will provide approximately 80 million kilowatt-hours of electricity annually, with a tentative sale price of $0.17 per kilowatt-hour, equivalent to approximately 1.2 RMB/kWh [1][38]. - The operational period of the project is set for 20 years, with the first phase expected to deliver around 40 million kilowatt-hours per year upon completion [1][11]. Group 2: Responsibilities and Conditions - Shenzhen Energy is responsible for the phased investment and construction of the power generation facilities, ensuring compliance with engineering, environmental, health, and safety practices [14][49]. - The purchase agreement stipulates that the buyer (Vatukoula Gold Mine) must provide land for the project and ensure that it is not included in other development plans during the construction and operational phases [38][54]. - The buyer is obligated to consume the agreed electricity amount and pay the corresponding fees, with a payment mechanism established for any discrepancies within ±5% of the expected annual generation [14][53]. Group 3: Financial and Legal Aspects - The project’s base sale price is set at $0.17 per kilowatt-hour, with payments to be made monthly starting from the commercial operation date [20][55]. - A performance guarantee in the form of a bank letter of guarantee will be required, amounting to $13.6 million, covering two years of contract annual electricity fees [58][59]. - The agreement will be governed by the laws of the People's Republic of China, and any disputes will be resolved through arbitration in Shenzhen [63][64]. Group 4: Strategic Implications - The agreement aligns with the company's strategic goals of reducing operational costs and enhancing green development by transitioning from high-cost, high-pollution energy sources to renewable energy [29][66]. - The successful implementation of this project is expected to meet the increasing electricity demands of the Vatukoula Gold Mine and support its sustainable growth [29][66]. - The framework agreement is not expected to impact the company's current financial performance but is seen as a positive step towards future operational efficiency [30][67].