A domestic source of a critical material used in hydraulic fracturing operations.
The approval for the proposed Angus Silica Sand Mine north of Prince George could have significant implications for natural gas and oil producers operating in Northeast B.C.
The Province recently issued an environmental assessment certificate to Vitreo Minerals Ltd. for its sand mine near Bear Lake, about 60 kilometres north of Prince George.
The approval allows the project to move forward into permitting, subject to 19 legally binding environmental and operational conditions.
While the announcement focuses on mining, the project’s primary product silica sand, also known as proppant, plays a key role in oil and natural gas extraction.
The material is pumped underground during hydraulic fracturing, or fracking, to help keep rock formations open, allowing oil and gas to flow to the surface.
For decades, much of the silica sand used in much of Western Canada’s energy sector has been imported from the United States. The province says the Angus mine would supply a domestic source of the material, reducing reliance on imports and shortening transportation distances.
For Northeast B.C.’s natural gas industry, the approval represents more than a mining project, it could establish a new B.C.-based supply chain for a material that is essential to drilling and production activities across the Peace Region.
That could be particularly important for operators in the Montney formation, one of North America’s most active natural gas-producing regions, which stretches across Northeast B.C. and Alberta.
Companies drilling and completing wells in the Peace Region require large volumes of silica sand for hydraulic fracturing programs. A source closer to home could potentially improve supply-chain reliability and reduce transportation costs for producers.
The mine is expected to produce up to two million tonnes of silica sand annually during its projected 20-year lifespan. The project will include an open-pit mine, raw sand and finishing plants, water-management infrastructure and storage facilities.
Beyond potential benefits for the energy sector, the project is also expected to create employment opportunities. Provincial officials say construction would generate approximately 150 jobs, while operations are expected to support nearly 140 long-term positions.
The project represents about $300 million in investment and includes commitments related to local and First Nations hiring and training opportunities.
Before issuing the certificate, the Environmental Assessment Office concluded that the project would not result in significant adverse effects if mitigation measures and conditions are implemented.
Those conditions include requirements for air-quality monitoring, wildlife protection, greenhouse-gas reduction measures, emergency planning and ongoing oversight of impacts on participating First Nations.
Several Indigenous communities participated in the environmental assessment process, including the Lheidli T’enneh First Nation, McLeod Lake Indian Band, Tsay Keh Dene Nation and West Moberly First Nations.
Under the terms of the environmental assessment certificate, the Angus mine must be substantially underway by 2036. Provincial compliance and enforcement officers will continue monitoring the project through construction, operations and eventual closure.
Add comment
Comments