Peat power in the Ring of Fire? Peat fuel producer eyeballs powering Far North mines.

• Author: Ross, Ian
• Position: MINING

A Toronto-based peat fuel pellet producer thinks he can provide a green source of power to mining companies currently operating off the grid in the Ring of Fire.

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Peter Telford, president and CEO of Peat Resources, was making the rounds at last spring's Prospectors and Developers Association of Canada's annual convention, talking to companies like KWG Resources and Cliffs Natural Resources of his ability to supply them with fuel for their future mine operations.

"If the Ring of Fire project proceeds and Cliffs wants to start processing chromite into ferrochrome for use in stainless steel, there will be a real power demand that (Ontario Power Generation stations in) Thunder Bay and Atikokan can't supply".

Peat Resources has an indicated and measured resource at its Upsala property in northwestern Ontario of 22.5 million tonnes of fuel-grade peat. The company has a small pilot plant there, where it has been optimizing its wet harvesting method and pelletizing technology.

Peat is a biomass that has been used for power generation in Europe. But it has been an uphill climb for the Toronto company to convince the Ontario government that the swampy material can be used as an environmentally friendly alternative fuel to burning coal.

With the Ontario government still not having made an official decision on whether peat can be included in the biomass mix at OPG generating stations, Telford is turning his attention to the chromite and base metal miners exploring in the James Bay lowlands.

Telford suspects a ferrochrome processing facility could require 400 megawatts of power.

OPG's Thunder Bay and Atikokan plants produce a combined 517 megawatts, but are scheduled to be off-coal by 2014. Plans are underway to convert Atikokan into a biomass-burning station using wood pellets.

"The mine development and ore processing need reasonably priced power and power generated at Thunder Bay and Atikokan from wood pellets is not going to be reasonably priced power," said Telford.

So far, the conversations with miners have been very preliminary.

Telford said until companies like Cliffs consolidate their holdings at McFauld's Lake and prove up their resources, it is too early to talk about their specific power needs.

"By fall, they'll be ready to start thinking about their infrastructure and energy needs."

It hasn't stopped Telford from doing his own groundwork.

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