Mediterranean Resources comments on hydroelectric development in its region in Turkey
VANCOUVER, Aug. 19, 2011 /CNW/ --
VANCOUVER, Aug. 19, 2011 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR;
Frankfurt: MHM1) ('Mediterranean') wishes to comment upon the evolution
of various hydroelectric projects in the part of north-east Turkey
where Mediterranean's Yusufeli project is located.
While nothing has occurred to our knowledge with the advancement of the
Yusufeli Dam, it has been noted that work has begun on the Arkun Baraji
(Dam) several kilometres upstream from the proposed Corak minesite. The
Arkun dam can be seen at the far left of the map below -
**Please refer to Diagram 1 at http://www.medresources.ca/projects/maps/.
The only other proposed dam on this map that has reached construction
stage is the Deriner Dam (at the top right in red).
The Arkun Dam is a potential boon to Mediterranean's project as the 222
MW hydroelectric power station associated with this dam is being
constructed right in front of the proposed minesite (to be fed water
from upstream via a tunnel). This is a very positive development for
the proposed mine as it significantly lowers the Capex on power
infrastructure at the mine. In addition it brings the prospect of the
lower electric cost inputs that hydro-power affords.
The dams (existing and proposed) on the Coruh River date back to a plan
first propagated in the early 1960s. From the chart that follows one
can note only the lowest two dams on the river have reaching
functioning status, while only the Deriner Dam is advanced and the
Arkun Dam has just started earthworks. Interestingly the Arkun Dam has
leapfrogged up the timetable. As is well known, the Yusufeli Dam, which
would border our proposed minesite, is the most problematical of the
dams requiring extensive relocation of settlements and their
populations, particularly the historic town of Yusufeli.
**Please refer to Diagram 2 at http://www.medresources.ca/projects/maps/
The cost of industrial electricity (not specifically hydro) in Turkey is
currently about 0.25 TL per kwh (US 15c per kwh). According to recent
articles in the Turkish press, the specific trade cost of hydro-power
from the Turkish electricity generation company to the Turkish electric
distribution company is a lot less than this (0.06 TL per kwh). This
presents the opportunity for the Yusufeli project to exploit these
substantially lower electricity rates from hydroelectric facilities in
very close proximity to the proposed milling facility at Corak.
Signed on behalf of the Board of Directors
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Christopher Ecclestone
Chief Executive Officer
604-669-3397
www.medresources.ca