LNG becoming increasingly popular in powering the mining industry

Teck Coal is piloting the use of six LNG powered haul trucks. — Photo: Teck

According to an article prepared by HHP Insight, the company behind the upcoming Fifth Annual High Horsepower Natural Gas Event in Chicago October 11-13, LNG in making great gains in powering the mining industry.

Larry Davey, VP, Planning and Development at Teck Coal is slated to speak at the conference about how the company is piloting the use of six LNG powered haul trucks which marked the first use of LNG as a haul truck fuel at a Canadian mine site earlier this year.

Several new initiatives for liquefied natural gas for mine vehicles and onsite power generation were disclosed in recently, “a clear sign of the value proposition offered by natural gas in this HHP (High Horsepower) segment.”

Among the recent examples HHP sited:

• Ferus Natural Gas Fuels (Ferus NGF) has signed an MOU with the Vancouver-based Casino Mining Corporation – which is owned by Western Copper and Gold – and Selwyn Chihong Mining group to supply LNG to mine projects in the Yukon and Northwest Territories. A new LNG production plant with 600,000 gallons per day of total capacity will be constructed in British Columbia to serve the mining operations. These LNG fueled mining projects will reduce a total of 255,000 tons of CO2 emissions compared to what would otherwise be diesel-fueled operations.
• GFS Corp (“Gaseous Fuel Systems”)has extended its range of dual fuel kits, already available for certain Caterpillar and Komatsu mine haul trucks, to the Caterpillar 785 truck and model 9920 wheel loaders. GFS just announced a double-digit order, with deliveries to commence in January as the driver for the new kits.
• Teck Resources is testing six dual fuel LNG haul trucks at its steelmaking coal operation in British Columbia, with fuel being sourced locally in BC.
• Arch Coal and Alpha Coal West – two of the largest operators in the famed Powder River Basin in Wyoming – have both run LNG demonstration projects in their haul truck operations in the last several years.
• Barrick Gold is converting the fuel supply at the power plant that provides electricity to its Pueblo Viejo Mine in the Dominican Republic. LNG is replacing heavy fuel oil there and is reducing operating costs with a minimal capital investment. The company additionally plans to convert the fuel supply at its lime kilns to LNG by 2017.
• Wellgreen Platinum has deployed GE Jenbacher gas engines for a complete power generation and transmission network operating from a nickel-copper mining project in the Yukon Territory of Canada. Ferus supplies the LNG to power these generators, which will also allow Yukon communities to benefit from this lower-cost fuel.
• Stornoway Diamond Corporation has procured LNG from Gaz Metro, which will truck the fuel to its Quebec mine. Natural gas will be used to fuel the gas generator sets at the Renard Diamond Project’s power plant.
• Omya Industries has replaced fuel oil with LNG at its quarry in Vermont, with its massive LNG fuel storage facility provided by Chart Industries. The manufacturer of calcium carbonate will utilize LNG to produce heat for industrial processes, and has contracted with Casella to employ a fleet of LNG ore trucks to haul stones from the quarry.

“Progressive mining customers understand the long-term benefits of a natural gas pathway and are increasing moving to this low emission and low and stable cost energy source,” GNA says, parent company behind the HHP Insight and the conference.

“Since its inception, the HHP Summit has served as the official meeting place of high horsepower industry stakeholders to discuss the opportunities and challenges offered by natural gas in high-fuel use operations,” GNA stated.

Find out more about the HHP conference at www.hhpinsight.com