Elemental targets 2019 start at Dougou
PERTH (miningweekly.com) – Potash developer Elemental Minerals is aiming to start production from its Dougou project, in the Republic of Congo, in 2019.
The ASX-listed company on Tuesday released the results of a scoping study into the project, which indicated that a capital investment of $430-million would be require to support the Phase 1 production of 400 000 t/y of potash.
Based on the 1.1-billion tonnes of measured and indicated resource, the project was expected to have a mine life of about 47 years, and would operate at a cost of $68/t.
The scoping study estimated that the project would have an after tax net present value of $880-million and an internal rate of return of 21.67%.
While the Phase 1 production was estimated at 400 000 t/y, the Phase 2 development would double production to 800 000 t/y by the fifth year of operation, increasing again to some 1.2-million tonnes by Phase 3, some eight years after first production.
“The very favourable geological attributes coupled with the location and infrastructure in the area, provide a rare opportunity to develop a potash mine with low capital requirements and low operating costs relative to potash projects elsewhere,” said Elemental CEO John Sanders.
“A mining operation at Dougou would be placed at the very low end of the global operating cost curve and is located 5 600 km from the key Brazilian market.”
Sanders said that the Dougou project also complemented the Kola sylvanite project, some 15 km away, and further underscored the company’s plans to see the Sintoukola permit becoming the centre for low-cost potash production.
He added that infrastructure synergies between the two projects would be pursued in the next study phase.
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