Name of the Project
Wynyard carnalite project.

Location
Saskatchewan, Canada.

Project Owner/s
Canadian fertiliser products company Karnalyte Resources and India-listed agribusiness firm Gujarat State Fertilisers & Chemicals (GSFC) made a strategic investment of about $44.7-million in Karnalyte in 2013, resulting in GSFC’s holding a 19.98% ownership stake.

Project Description
The project proposes the construction of a solution mining facility at Wynyard, Saskatchewan, to produce a high-grade (97% purity) granular potash product.

Karnalyte intends to build the facility in three phases, with Phase 1 expected to produce an estimated 625 000 t/y, increasing by 750 000 t/y in Phase 2 and totalling 2.125-million tonnes a year with the addition of Phase 3.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Karnalyte Resources is updating the National Instrument 43-101 technical report for its Wynyard potash project, on the back of a strong outlook for the industry.

The company, which concluded a strategic review of its projects in 2022, had selected consulting and engineering group Wood as lead author of the update to the technical report.

The services of senior project adviser ProMine Project management and Brad Straub, who previously worked with majors BHP, Nutrien and Mosaic, have been retained to assist the company in its oversight and evaluation of the update to the technical report.

Karnalyte plans to complete an update for Wynard by the end of the second quarter of 2022, the company has stated.

Following 2021’s strategic review, Karnalyte had concluded that it needed a major industry partner to help overcome unfavourable market conditions, including low prices and low levels of interest from financial institutions.

However, conditions in the potash market are improving, with analysts predicting that the events that caused the higher prices are not likely to change soon. Russia and Belarus normally supply about 40% of the world’s potash. Sanctions on Belarus began in 2021 and, in early March 2022, Lithuania cancelled its rail contract with Belarus, cutting off the landlocked country from shipping its potash to the market.

The Russian invasion of Ukraine and resulting sanctions on potash and other trade from Russia has had a severe impact on potash supply.

Canadian potash suppliers are clinching supply contracts with India and China of about $590/t – more than double the prices of the first quarter of 2021, Karnalyte has reported.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Karnalyte Resources, tel +1 306 986 1486 or email info@karnalyte.com.