Teck Resources is set to test the use of liquefied natural gas (LNG) as a fuel source in six haul trucks at its Fording River steelmaking coal operation in south-east British Columbia, Canada.
It is part of the company's efforts to cut annual greenhouse gas emissions by 450,000t at its operations by 2030 and is expected to run until mid-2016.
The pilot will provide more information about the potential of using LNG across the company's haul truck fleet.
FortisBC is transporting and supplying LNG to the mine site.
Teck Resources president and CEO Don Lindsay said: "LNG is a fuel source that has the potential to lower costs, significantly reduce emissions and improve environmental performance at our operations.
"We are committed to minimising our own carbon footprint, while at the same time continuing to provide the mining products that are essential to building a modern, low-carbon society."
Using blended LNG/diesel fuelled haul trucks is expected to lead to environmental benefits, as well as cost savings. It will also remove around 35,000t of CO2 emissions annually at the company's steelmaking coal operations.
Fuel costs will come down by more than $20m annually by adopting LNG and diesel hybrid fuel across the operations, the company said.
With support from FortisBC, the company has upgraded the Fording River Operations truck maintenance shop and implemented a comprehensive safety programme prior to proceeding with the pilot.
FortisBC president and CEO Michael Mulcahy said: "LNG, as a vehicle fuel source, provides both an economic and environmental benefit to industry in our province."