Evol has secured a contract to supply LNG to Doray Minerals' Deflector gold-copper project in Australia from its Kwinana plant.
Beginning April 2016, Evol will supply about 4,560t of liquefied natural gas (LNG) per annum for the mining project.
Located 160km east of Geraldton in the mid west region of Western Australia, the greenfield Deflector project will house a dual-fuelled power station, which is under construction at present.
Pacific Energy's subsidiary Kalgoorlie Power Systems (KPS) will construct, own and operate the power station, which will be fuelled by 30% diesel and 70% natural gas.
Doray Minerals managing director Allan Kelly said that the use of LNG would provide the project with stable power as well as low energy costs throughout the initial life of the mine.
Evol business manager Nick Rea said: "Entering into an agreement with Doray during a period of historically low energy prices demonstrates our resilience in a highly competitive market, but the team's also been pretty innovative to bring costs down.
"By using LNG at Deflector, Doray will reduce its exposure to imported diesel costs, avert more than 3,800t of carbon emissions per year compared to diesel, which is equivalent to removing more than 1,100 cars from the road, and support jobs in the local production and distribution of LNG."
The on-site LNG storage and vaporisation facility will use a vaporisation system, where waste heat from KPS's power station will be recovered to vaporise LNG.
Deflector has an initial mine life of six years, and exploration potential within the under-explored 7km-long 'Deflector Corridor'.
The company plans to construct a processing facility at the mine to enable recovery of gold from a gravity circuit prior to the production of a copper / gold concentrate through flotation methods.
Image: A typical EVOL LNG storage and vaporisation facility located in the Goldfields region of WA. Photo: courtesy of EVOL LNG.