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Ferus Natural Gas to Build Proposed LNG Plant for Canadian Mine Projects

 

Vancouver-based Casino Mining Corporation and Selwyn Chihong Mining have signed a Memorandum of Understanding (MOU) with Ferus Natural Gas Fuels for LNG supply to the proposed Casino and the Selwyn Chihong mine projects located in the Yukon and Northwest Territories (NWT), Canada.

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. 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 gallons per day of LNG 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 tons per year of CO2 emissions over the current 22-year mine life,” said Paul West-Sells, President & CEO of Western Copper and Gold Corp., the public company that owns Casino.