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Australian gold mine to use LNG

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LNG Industry,

EVOL LNG has announced that it has signed a long-term agreement to provide LNG to Adaman Resources’ wholly-owned subsidiary Kirkalocka Gold SPV Pty Ltd.

The LNG will be used to power the Kirkalocka Gold Mine, which is located approximately 70 km south of Mt Magnet in the mid-west region of Western Australia. The plant is set to restart operations after more than a decade of being offline, with the plant’s new owners refurbishing the processing plant and increasing its capacity to over 2.2 million tpy.

According to the statement, the facility will use LNG to fuel Zenith Energy’s 14.5 MW power station, with supply scheduled to begin this September.

EVOL LNG and Wholesale Manager, Nick Rea, said: “LNG produces 25% less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50 000 t of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3000 cars off the road.”

EVOL claims that it build, own, operate and maintain the on site LNG storage and vaporisation facility at the mine. The facility will use EVOL’s modular design, which allows for fast installation and expandability to suit the mine’s increasing energy requirements.

Adaman Resources’ Chief Executive Officer, Craig Bradshaw, said: “Utilising LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than $13 million during the first six years of operation.”

Rea added: “The scarcity of gas pipelines and absence of grid power would otherwise force off-grid mines to use diesel for power generation, but we are able to provide a much better solution with LNG. It’s clean, safe, reliable and lower cost than diesel.

“We have proven ourselves to the mining industry over the last decade, with seven mine sites now powered by EVOL LNG.”

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