A Yukon mine plans to use liquefied natural gas at its site, in what the company says will be the first mining project in Canada to be powered by LNG.
Wellgreen Platinum Ltd., announced its agreement with Ferus Natural Gas Fuels this week. Ferus’ LNG facility in Alberta would supply the gas to Wellgreen, which is located just off the Alaska Highway near Burwash Landing. The company has identified Haines and Skagway as potential ports for export, if the site is developed.
The information released about the LNG agreement did not specify how the gas would reach the Wellgreen site. But Ferus CEO Dick Brown is quoted in a press release saying the company is “committed to building the required LNG infrastructure across Canada and the U.S. to supply the fuel for markets.” Both companies said they will also work with Yukon businesses, communities and First Nations to explore other LNG opportunities, especially near the Wellgreen site, to drive down transport costs for the fuel.
Wellgreen is still in the exploration phase, but released an updated mineral resource estimate for the site in July. The company’s preliminary economic assessment of the project is slated to be completed in September and could provide more information about the project or any future mine development at the site.
Liquefied natural gas is begin touted in Canada as a safe and economical energy source for developing Canadian mining projects, as well as for export. Proponents say the development of an LNG industry would be a boon for Canada’s economy. Critics say at least some of the LNG supply would originate from fracking operations and they say the product is not as clean or environmentally friendly as proponents claim.