Advanced Explorations looks at liquid natural gas for Nunavut iron mine project

Advanced Explorations Inc. said Nov. 2 that it has received unanimous board approval to move ahead with engineering studies on powering its Roche Bay iron mine project with liquid natural gas power.

The Roche Bay project contains more than a billion tonnes of high-grade iron ore over 140 kilometres, 60 km southwest of Hall Beach and close to the coast at Roche Bay.

The engineering studies will now determine how much money the company can save by a start-up scenario that would include using liquid natural gas to produce its power, the company said in a Nov. 2 news release.

The recently-released Roche Bay feasibility study using liquid natural gas could shave $8 per tonne off the $50/tonne price of producing 5.5 million tonnes of iron a year from the mine.

The liquid natural gas power option is “an affordable and viable option for power generation at Roche Bay,“ Advanced Explorations said.

Advanced Explorations’ partner for the Roche Bay Project, XinXing Ductile Iron Pipes Co. Ltd., also has experience with using liquid natural gas, the company said.

A pre-feasibility study on the liquid natural gas power option is expected to show more about the possible use of liquid natural gas at Roche Bay.

The final report of Advanced Explorations’ “Alternative Power Concept Study,” spearheaded by Advanced Explorations and the Government of Nunavut, is also expected to be completed shortly, the news release said.

Last April, Nunavut’s department of Economic Development and Transportation teamed up with the Advanced Explorations to look at new energy sources.

Advanced Explorations said it’s looking forward to being able “to extend its collaboration with Nunavut.”

John Gingerich, the company’s president and chief executive officer, said “there is considerable potential to deliver a sustainable and cost-efficient alternative power solution for the Roche Bay Project.”

“Moreover, the knowledge gained from the engineering studies will provide a useful platform to solve one of the key challenges facing development of Canada’s North; affordable power.”