Gold mine could double Yellowknife's power needs: TerraX
Nuclear, wind, considered possible options; power corp. spokesperson suggests liquid natural gas plant
Meagan Leonard
Northern News Services
Wednesday, February 17, 2016
SOMBA K'E/YELLOWKNIFE
As optimism swirls around development of the Yellowknife City Gold project, some are wondering where the mine will get its power when it comes online.
Over the last two years, drought and low water levels in the Snare system have left the GNWT on the hook for $50 million in diesel expenditures. With the new mine anticipated to double or triple the city's power load, TerraX Minerals president Joe Campbell said he pitched the idea of a nuclear reactor to the premier.
"You need a high, steady base rate to get a high peak draw when you turn on certain bits of machinery," he said. "There's only a couple of systems available today that will provide those levels of power."
Campbell said technically the mine could be run on diesel but it is not the most environmentally or economically friendly option. He said he is hopeful TerraX and the GNWT can do some brainstorming before production begins around 2025.
"Diesel is a tough option. It requires a lot of infrastructure and transportation of fuel (over) great distances," he said. "If there's an opportunity to do something other than diesel then we should definitely look at it."
This isn't the first time nuclear power has been suggested as an alternative for the city.
Last fall, Yellowknife city councillor Niels Konge pitched the idea of a tiny nuclear reactor powered by a softball-sized chunk of depleted uranium. However, when asked about the concept, the GNWT energy division said it would not seriously consider the technology until it's been established elsewhere. Yellowknifer Daniel Gillis has also been a very vocal advocate of small-scale nuclear technology.
GNWT spokesperson Andrew Livingstone stated in an e-mail nuclear energy continues to be an area of interest given the territory's high energy costs but the government is looking at other options first.
"We are aware of the development and use of contained, small-scale nuclear technologies," he said. "However, none exist in North America and there are technical and regulatory issues with 'micro-nuclear' that will take a number of years to address before we can use them here."
In a 2012 study by the Institute for Energy Research, nuclear power was found to have the lowest electricity production costs at an average of 2.10 cents per kilowatt hour. Currently, Yellowknife customers pay 28.9 cents per kilowatt hour.
Northwest Territories Power Corp., spokesperson Pam Coulter said in the event a gold mine was connected to the North Slave grid, the most viable option would be a liquid natural gas plant adjacent to Yellowknife.
"This would provide power to the mine for its lifespan and provide both non-diesel back-up and growth potential for the North Slave," she stated in an e-mail. "Licensing timelines for nuclear would likely exceed this mines' in-service date."
Power Corp., operates seven hydroelectric plants in the territory with a total capacity of 50 megawatts. The largest is Talston, which has an 18 megawatt capacity and provides power to Fort Smith, Hay River, Fort Resolution and Enterprise. Coulter said the company has explored the possibility of connecting the South Slave to the North Slave grid but it is not cost effective based on current demand.
"It doesn't appear to be economically feasible in the short- to medium-term," she said. "However, if demand for power increased significantly due to a new mine, we could re-examine the potential of this connection."
The GNWT is also conducting a study to determine expansion options for the future while examining more cost-effective ways to offset periodic droughts and load growth, said Livingstone. One concept is a wind farm near the Snare Hydro dam, 140 kilometres from the city. Elevation in this area is high enough to access a wind layer capable of providing two to three megawatts per turbine with a goal output of 10 megawatts. A wind farm established at the Diavik Diamond mine in 2012 cost $13 million and has an output of 9.2 megawatts from four turbines. It is anticipated that Yellowknife could be partially powered by wind energy within two to three years.
If TerraX requires energy similar to that of Con or Giant Mine, Livingstone said most if it could be offset by capacity at the Snare hydro system if water levels remain consistent, or through an expansion to the Bluefish facility.
"During the period of planning leading up to the construction of the mine, other options could emerge," he said. "Load growth in other areas could substantiate the development of a new hydro site ... infrastructure and energy development go hand-in-hand."
The average load for the North Slave grid in 2015, including Yellowknife, Behchoko and Dettah was approximately 21 megawatts with a peak of 35 megawatts. Campbell said he anticipates the mine will double this.
"Right now the system that's in place north of the Slave is not large enough to do the city, let alone an additional mine on top of it," he said. "That's why we have to start talking about these things now."
