Vancouver-based Casino Mining Corporation (Casino) and Selwyn Chihong Mining Ltd. (Selwyn Chihong) have signed a Memorandum of Understanding (MOU) with Ferus Natural Gas Fuels Inc. (Ferus NGF) for liquefied natural gas (LNG) supply to the proposed Casino and the Selwyn Chihong mine projects located in the Yukon and Northwest Territories (NWT).
To ensure proximal and long-term security of supply for the mines, Ferus NGF plans to build and operate a two-phase LNG plant in the vicinity of Fort Nelson, British Columbia (BC). The Fort Nelson area was strategically chosen to minimize the cost of transporting the LNG to the mines, contributing to supply reliability and strong project economics. 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 proposed LNG plant in Fort Nelson is expected to meet world class safety and environmental performance standards and will be completed in close collaboration and consultation with the relevant community and First Nations groups in northeast BC, Yukon and NWT. Furthermore, this plant will create direct construction and fuel transportation jobs in the region, and with the liquefaction of up to 50 mmcf/day of natural gas, could indirectly create jobs by re-activating some upstream drilling activity.
"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. (Western), the public company that owns Casino. In addition to improved economics, the Selwyn Chihong project is expected to eliminate 115,000 tonnes per year of CO2 emissions over the current 11-year mine life.
FerusLNG HD from Communications at Ferus on Vimeo.
"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," said Dick Brown, President & CEO of Ferus NGF. "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 neighboring mines, industries and communities currently powered by diesel by making the LNG more broadly available."
"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," said Richard Li, CEO & Director of Selwyn Chihong.