EVOL LNG, the LNG business of Wesfarmers in Australia, has announced that it will soon begin supply of LNG to the Davyhurst Gold Mine in Western Australia.
The gold mine, located in Western Australia’s North-West Goldfields region, is restarting production in January 2021 after being placed into care and maintenance in 2018.
The new long-term agreement between Ora Banda Mining and EVOL LNG will see the latter build, own, operate and maintain the onsite LNG storage and vaporisation facility at the mine.
EVOL LNG’s Manager Nick Rea said the business had proven its winning LNG solution to the mining industry over the past 12 years with its customer base continuing to grow.
“We are excited to support the Davyhurst mine back into production,” he said. “Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to EVOL LNG’s customers.”
The facility will use EVOL LNG’s modular design which allows for fast installation and expandability if the mine’s energy requirements increase in the future, and Ora Banda Mining’s Managing Director and CEO David Quinlivan added, “Ora Banda’s agreement with EVOL LNG has enabled the company to secure a stable long-term energy solution for Davyhurst on terms consistent with those outlined in the Definitive Feasibility Study [released to the ASX on 30 June 2020].”
“The use of LNG as the primary fuel source for the Davyhurst power station also provides significant environmental benefits. The company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 tonnes during the initial five years of operation when compared to conventional diesel power generation.”
The mine will use EVOL LNG to fuel a 7.5 MW gas-fired power station, with supply planned to commence from December 2020. The LNG will be supplied from the Kwinana production facility which was expanded earlier this year. Planning is underway for the next expansion of that site to meet the growing market demand.
EVOL LNG announced in September it had also secured a long-term supply to Horizon Power for the Esperance power project.