Canadian Zinc signed a deal with Northwest Territories Power to examine the supply of electricity, including LNG-powered generation, for a mine in the Northwest Territories.
Under the memorandum of understanding, NTPC would assess how it could supply the primary electrical energy source to the Prairie Creek Mine and how it could install generating and connection facilities to provide such electricity supply, the two companies said in a statement.
NTPC is a unit of NT Hydro, which is owned by the government of the Northwest Territories.
The duo added they have also agreed to evaluate the integration of other energy alternatives, and specifically liquefied natural gas (LNG), as part of the energy supply for the Canadian Zinc-owned mine.
NTPC is currently investigating the potential to supply LNG for the power generation in local communities to reduce dependency on diesel fuel, including Fort Simpson, where the LNG would be delivered along the same existing highway network that would be used to supply the mine.
Alan Taylor , Chief Operating Officer for Canadian Zinc, said in the statement that the mine would gain environmental and economic benefits from use of LNG as an alternative source of energy.
“This would reduce the dependency on diesel fuel by replacing it with LNG, which is a lower cost and much more environmentally friendly source of fuel for power generation,” he said.
“The development of LNG production facilities in northern BC and the recent discovery of natural gas in the Liard/Horn River Basins of the NWT, which are located adjacent to the existing highway haulage route, has made the potential use of LNG to be delivered to the mine by the proposed all season road, currently in the advanced phase of the environmental assessment permitting process, a viable alternative energy source for the Prairie Creek Mine,” added Taylor.