YukonEnergy Corp. has a new major customer, as it has negotiated a powerpurchasing agreement with the owner of the Bellekeno silver mine.
Alexco Resource Corp. has agreed to buy hydroelectricity from thepublic utility for its Bellekeno silver mine near Keno City. The companyis expected to begin commercial production next month.
Yukon Energy says it will cost Alexco an estimated $430,000 to hook the Mayo-Keno transmission line to the Bellekeno mill site.
After that, the mine is expected to pay just over $8,000 a month forits power, including a $7,300 fixed fee and an industrial power rate ofabout 10.5 cents per kilowatt hour.
"You know, it's all about the development and the prosperity of theterritory. I mean, we're all sharing in the pain and we're all sharingin the gains," Yukon Energy president David Morrison told CBC News onWednesday.
"Mining customers and mining developments have been the backbone ofthe territory," he added. "I mean, that's why we have both theWhitehorse and the Mayo hydro plants. They were built to serve miningcustomers."
Construction done on schedule
Also onWednesday, Alexco announced that it has completed construction of themine and mill on schedule. It has also began its mill commissioningprocess, the company said in a release.
Yukon Energy's power purchasing agreement with Alexco is based onelectrical rates charged to other industrial customers in the territory.The deal takes effect immediately.
Morrison said the Mayo hydroelectric plant already has the capacityto supply power to the Bellekeno mine, adding that there will also besurplus power when the Mayo B hydroelectric dam expansion is completed.
The $8,000 a month fee being proposed for Alexco — about $100,000 ayear — mirrors similar rates approved for other mines, Morrison said.
"I'm not sure that you send a very positive message when you say toone sector — whether it's commercial or industrial customers — you know,'You guys should pay more because you make money.' So yes, they arepaying their fair share," Morrison said.
The power purchasing agreement requires approval from the YukonUtilities Board. If approved, the rate Alexco will pay will be effectiveuntil 2013.
Read more: https://www.cbc.ca/canada/north/story/2010/09/29/yukon-energy-alexco-deal.html#ixzz10xnkdMe3