Vancouver-based Casino Mining Corporation and Selwyn Chihong Mining have signed a deal with Ferus Natural Gas Fuels for LNG supply to the two companies’ proposed mine projects located in the Yukon and Northwest Territories.
Under the memorandum of understanding, Ferus NGF plans to build and operate a two-phase LNG plant in the vicinity of Fort Nelson, British Columbia, in order to ensure proximal and long-term supply for the mines, a joint statement issued on Wednesday reads.
Each phase, anticipated to be commissioned in 2020 and 2022 respectively, will produce 300,000 US gallons per day of LNG (equivalent in energy to approximately 175,000 gallons per day of diesel) and will supply the power generation plant and mining operations for the two projects.
“The use of LNG instead of diesel in our operations will significantly reduce the cost of power generation and will eliminate 140,000 tonnes per year of CO2 emissions over the current 22-year mine life,” said Paul West-Sells , president & CEO of Western Copper and Gold Corp, the public company that owns Casino.
The Selwyn Chihong project is expected to eliminate 115,000 tonnes per year of CO2 emissions over the current 11-year mine life.
Ferus NGF president and CEO, Dick Brown added that setting up the LNG plant for the two mining projects could also benefit neighboring mines, industries and communities currently powered by diesel by making LNG more broadly available.