QUEBEC – Stornoway Diamond Corp. of Montreal has studied the feasibility of building a 161-kV power line to supply grid power to the Renard diamond project in the Otish Mountains. According to the study prepared by Hydro-Quebec, the capital cost of a 159-km long line to the Laforge 1 hydroelectric generating station will be $173.6 million.
The Renard feasibility study assumed that power would be generated at the mine site using diesel-fueled gensets. That option would cost $802 million and have an average operating cost of $54.71 per tonne of ore. Building a power line represents additional capital costs, but the operating cost would be lowered by about $9 per tonne.
Hydro-Quebec’s proposal will support multiple users, including potential mining projects south of the Renard project. The utility also requires that Stornoway finance the entire cost of the line, but it will rebate some of the costs should other users be connected in the future.
After weighing the costs and benefits, Stornoway has decided not proceed with the power line at this time. The company said it will consider a power line to Renard on a more cost efficient basis as a second phase capital investment following the completion of mine construction, and based upon the future potential development of the project's large inferred mineral resource and exploration upside.
More information about the Renard development is available at StornowayDiamonds.com.