Wesfarmers’ liquified natural gas business Evol LNG has signed a long-term deal to supply the chilled fuel to Ora Banda Mining’s gold mine.
Davyhurst Gold Mine, located in WA’s North-West Goldfields region, is restarting production in January 2021 after being placed into care and maintenance in 2018.
Evol LNG’s manager Nick Rea said, “Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to Evol LNG’s customers.”
Evol LNG will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine. The facility will use Evol LNG’s modular design which allows for fast installation and expandability if the mine’s energy requirements increase in the future.
Ora Banda Mining’s managing director & CEO David Quinlivan said, “Ora Banda’s agreement with Evol LNG has enabled the company to secure a stable long-term energy solution for Davyhurst on terms consistent with those outlined in the Definitive Feasibility Study.”
He further noted that the use of LNG as the primary fuel source for the Davyhurst power station also provides significant environmental benefits.
“The Company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 tonnes during the initial five years of operation when compared to conventional diesel power generation,” Quinlivan said.
The mine will use EVOL LNG to fuel a 7.5 MW gas-fired power station, with supply planned to commence from December 2020.
The LNG will be supplied from the Kwinana production facility which was expanded earlier this year and planning is underway for the next expansion to meet the growing market demand.
Evol LNG has earlier also secured a long term supply to Horizon Power for the Esperance power projec t.