Evol LNG Inks Supply Deal with Oz Ora Banda Mining

Evol LNG has signed an agreement with Ora Banda Mining for long-term supply of LNG to Davyhurst gold mine in Western Australia (WA), Evol said on September 17 in a statement.

“We are excited to support the Davyhurst mine back into production. 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,” Evol’s manager Nick Rea said.

The gold mine, located in WA’s North-West Goldfields region, is due to resume operations in January 2021 after being placed into care and maintenance in 2018. Evol will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine. The facility will use Evol’s modular design which allows for fast installation and expandability if the mine’s energy requirements increase in the future, the company said.

Ora Banda Mining CEO David Quinlivan said the use of LNG as the primary fuel source for the Davyhurst power station 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,” Quinlivan said.

The mine will use LNG to fuel a 7.5 MW gas-fired power station, with supply set to begin in December 2020. The LNG will be supplied from the Kwinana production facility which was expanded earlier this year. Plans are underway to expand its capacity further to meet growing market demand, Evol said.