Casino Mining Corp. and Selwyn Chihong Mining Ltd have signed a memorandum of understanding (MoU) with Ferus Natural Gas Fuels Inc. (Ferus NGF) for the supply of LNG to proposed Casino and Selwyn Chihong mine projects in the Yukon and Northwest Territories (NWT), Canada.
Ferus NGF is planning to construct and operate a two-phase LNG plant in vicinity of Fort Nelson, British Columbia (B.C.), Canada, in order to ensure the mines’ proximal and long-term security of supply. Each phase will produce 300 000 gal./d of LNG and will supply the power generation plant and mining operations for the two projects. The plant’s location was chosen to decrease the cost of delivering the LNG to mines.
The proposed facility in Fort Nelson will be developed in close collaboration with the relevant First Nations groups and communities in northeast B.C., Yukon and NWT. It will liquefy up to 50 million ft3/d of gas.
Paul West-Sells, the President and CEO of Western Copper and Gold Corp. – the company that owns Casino – said: “The use of LNG instead of diesel in our operations will significantly reduce the cost of power generation and will eliminate 140 000 tpy of CO2 emissions over the current 22-year mine life.”
In addition to improving economics, it is expected that the Selwyn Chihong project will eliminate 115 000 tpy of CO2 emissions over the current 11-year life of the mine.
The President and CEO of Ferus NGF, Dick Brown, said: “In signing this MoU and adopting LNG as part of the energy portfolio for their projects, Casino and Selwyn Chihong are demonstrating progressive thinking and remarkable leadership.
“Not only does this fuel choice make their projects cleaner and more competitive, demonstrating their commitment to building modern, environmentally responsible mines, it may also benefit neighbouring mines, industries and communities currently powered by diesel by making the LNG more broadly available.”
The CEO and Director of Selwyn Chihong, Richard Li, added: “We have chosen to work with Ferus NGF because of their get-it-done approach and proven expertise in the construction and operation of LNG facilities, including the first Canadian merchant LNG plant in Elmworth, Alberta, and the LNG plant under construction in Jacksonville, Florida by its US-based related company Eagle LNG Partners.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21092016/ferus-ngf-to-supply-proposed-canadian-mine-projects-with-lng-3082/