The mining newspaper for Alaska and Canada's North

Coming Yukon mines eye BC LNG for energy needs

Casino Mining Corp. and Selwyn Chihong Mining Ltd. Sept. 21 reported the signing of a memorandum of understanding with Ferus Natural Gas Fuels Inc. for liquefied natural gas to supply the proposed Casino and Selwyn Chihong mine projects in the Yukon Territory.

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, B. C. Each phase, anticipated to be commissioned in 2020 and 2022, will produce 300,000 US gallons per day of LNG, the energy equivalent of roughly 175,000 gallons of diesel.

"The use of LNG instead of diesel in our operations will significantly reduce the cost of power generation and will eliminate 140,000 metric tons per year of CO2 emissions over the current 22-year mine life," said Paul West-Sells, president and CEO of Western Copper and Gold Corp., the public company that owns Casino. 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 British Columbia, Yukon and NWT. Furthermore, this plant will create direct construction and fuel transportation jobs in the region, and could indirectly create jobs by re-activating some upstream drilling activity.

"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 Ferrus NGF President and CEO Dick Brown.

"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."

Author Bio

Shane Lasley, Publisher

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Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.


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