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Local LNG powers Australian mining venture

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Hydrocarbon Engineering,

EVOL LNG has entered into a long-term agreement with Gascoyne Resources’ wholly-owned subsidiary GNT Resources Pty Ltd for supply of LNG to the Dalgaranga gold project.

Located approximately 70 km north-west of Mt Magnet in WA’s Murchison region, the mine will use LNG to fuel both Zenith Energy’s 15 MW gas-fired power station and the 2.5 million tpy gold processing facility, with supply planned to commence in 2Q18.

EVOL LNG Business Manager, Nick Rea, said: “Zenith Energy has developed a gas-fired solution with a fuel efficiency better than diesel generation that also delivers the required load-acceptance capability.”

EVOL LNG will build, own and operate a large onsite LNG storage and vapourisation facility at the mine. The facility will store more than one million litres of LNG which will keep the mine operating for up to two weeks if road access to the remote site is interrupted due to factors such as seasonal rainfall.

Gascoyne Resources’ Managing Director, Mike Dunbar, said the project’s 2.5 million tpy gold processing facility will also use LNG to fuel its carbon regeneration kiln, elution boiler and bullion furnace.

“Our decision to adopt LNG to fuel the project is about delivering the lowest energy costs, and doing so with a high level of reliability,” Mr Dunbar said.

“In addition to significant bottom line cost savings, Gascoyne will avoid more than 63 000 tonnes of carbon emissions over the same period, which is equivalent to keeping 4000 cars off the road.”

EVOL’s Nick Rea said the combination of high efficiency generators and the 25% lower carbon emissions from LNG meant an emission intensity lower than similar solar-diesel hybrid power stations.

“This is achieved without the need for any government assistance and is cheaper than diesel,” said Mr Rea.

“Mining and industry are increasingly seeking viable, low emission alternatives for their operations so supplying cleaner LNG that’s produced 100% in Western Australia makes economic sense and supports local jobs.”

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