As part of the contract KPS is purchasing, optimising and operating the existing 12.9-megawatt power station at the mine 250km north of Kalgoorlie in Western Australia.
It will buy the 10.5MW gas and 2.4MW diesel power plant from Round Oak for A$2.5 million (US$1.7 million).
Jaguar was first brought into production in 2007. Round Oak bought the mine, including its power station, last year.
KPS will also be expected to have completed a range of optimisation and enhancement works to improve fuel efficiency to an agreed target range, optimise control systems and reach agreed key performance indicators for station reliability, within five months.
The contract is expected to start in August and will run for an initial term of four years.
Round Oak will have the option to extend the contract for a further term.
Pacific Energy managing director James Cullen said Round Oak wanted to realise operating efficiencies at its power station.