Fort Liard (Mar 27/06) - According to new owners West Hawk Development, the world-class NWT coal deposits it recently acquired could lead to a mega-project that would rival the proposed pipeline.

South African energy giant Sasol is looking for a mining partner to build a $5 billion coal gasification instillation somewhere in the world, and it thinks the NWT might be the perfect spot, said West Hawk vice-president Robert Findlay.

"They're after us to get a 20-tonne bulk sample as soon as possible."

In gasification, coal is melted using a combination of heat, pressure and oxygen, releasing what is referred to as "syngas."

It can then be shipped in a pipeline, burned to generate power, or even liquefied into a sulphur-free substitute for diesel fuel.

"This is proven technology that's used all over the world... it's just relatively new to Canada," he said.

The process also results in glass-like waste rock, called slag, which traps any of the harmful byproducts.

"They don't leach out over time, so you can use that slag like asphalt for paving roads," he said. "There's no chemical treatment or open pit and coal is relatively inert, so it's very low impact."

Previous owners of the properties had a pre-feasibility study completed in 1979 by Techman Ltd., which indicated strip mining the deposits could result in one of the better possible coal gasification projects in North America.

"They're strategically located close to the proposed Mackenzie Valley Pipeline and north of the huge market for power in the Alberta oilsands," he said.

West Hawk knows there are a lot of myths surrounding coal and is anxious to start talking with Northern leaders to explain its advantages. This week the firm will meet with Nahendeh MLA Kevin Menicoche, who is stopping by the office while passing through Vancouver.

It will likely be six to 18 months before the company is ready to do any field work, but it wants to sit down with First Nations chiefs to ensure they're on-side beforehand.

"We're totally committed to working with aboriginal governments," said Findlay, adding the firm has a proven track record of building partnerships with the First Nations located near its holdings in B.C.

"There's no point in poking a hole in the ground until you have their support."

In Tulita, Chief Frank Andrew admitted he's heard rumblings among residents about West Hawk's purchase, but was shocked at the potential size of the project.

"Wow, $5 billion - big, big, big," he said. "If they come here that would be good because everyone would like to hear more about what they've got planned."

Mining isn't something Fort Liard is generally all that interested in, said Chief Harry Deneron when informed of West Hawk's purchase.

Looking at the historical record of Northern mining operations, he said the industry has a checkered past.

"They always leave a mess behind and they always disappear," he said.

Residents also have all the work they can handle with oil and gas projects, but he added he would welcome a chance to listen to what the company is proposing before making any final comments.

While West Hawk's plans are still very premature, its B.C. projects are more advanced, and Findlay said they show coal can change lives for the better.

"There'