Thursday, 09 April 2009 03:48 PM
MONTREAL -- Malaga (TSX: MLG) and its Swiss joint venture partner Emerging Power Developers S.A. ("EPD") are pleased to announce that their new hydroelectric plant at Pasto Bueno located in the Department of Ancash (Peru) has been put into commercial production.
The hydroelectric plant is made up of two Pelton type turbines (450 kW and 150 kW) and has a rated capacity of 600 kW. The hydroelectric power generated is, since January 2009, being supplied to the Pasto Bueno mine which was previously using diesel generated power on-site.
Malaga's President & CEO, Jean Martineau, is very pleased with the development of Pasto Bueno's hydroelectric potential which not only lowers the Company's operating costs but also puts Malaga at the forefront of sustainable mining practice and a leader its sector of activity. He has further stated that "the development of Pasto Bueno's hydroelectric potential will not only save the Company a considerable amount of money but will also allow it to reduce its emissions of greenhouse gases (CO2 essentially). Furthermore, Malaga is now 90% energy independent of the national power grid which will protect the company from any future increases in cost of energy."
The building of the new hydroelectric plant was funded through the Clean Development Mechanism ("CDM") under the Kyoto Protocol.
DEVELOPMENT OF THE HYDROELECTRIC POTENTIAL
The Pasto Bueno property, located at an altitude of more than 4,000 meters above sea level in the Andes, has a significant hydroelectric potential.
An 800 kW hydroelectric plant had in past been built on the Pelagatos River and used for several years before being decommissioned at the beginning of this century. When Malaga began rebuilding the Pasto Bueno mine it also initiated its hydroelectric project. Aside from reducing its operating costs and improving its overall energy strategy the project will produce several other beneficial impacts such as job creation and technology transfer (engineering, maintenance and operational know-how).
The rehabilitation of hydroelectric power production at Pasto Bueno is being implemented by Hidropesac a joint venture between Malaga and its Swiss partner EPD (a company specialized in hydroelectric projects). EPD holds 51% of Hidropesac.
Finally, Hidropesac is currently planning Phase II of the development of the hydroelectric potential of the Pelagatos River. Once this project has been completed, Hidropesac should be able to sell the excess electrical power generated.
For further information and for pictures of the plant, please visit the "Hidropesac" section of Malaga's website (www.malaga.ca).
ERRATUM
In the Press Release dated March 3rd, 2009 "Pasto Bueno: Technical report details tungsten reserves and resources" an error was made. Under the table of resources and reserves a note was added stating that "the resources given in the above table do not include proven and probable reserves" this should have read as follows "Measured and indicated resources given in the above table include all the proven and probable reserves" Please excuse this error.
ABOUT MALAGA INC.
Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, through increasing its tungsten concentrate production, continuing the exploration of the Pasto Bueno property, and through strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.
FORWARD-LOOKING INFORMATION
Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.
SOURCE: MALAGA INC.
Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224