PERTH (miningweekly.com) – Potash hopeful Elemental Minerals has launched a bankable feasibility study (BFS) at its Kola sylvinite project and a prefeasibility study (PFS) at its Dougou carnalite project.
The two projects formed part of the larger Sintoukola permit in the Republic of Congo.
The BFS for the Kola project would likely be completed by the third quarter of 2016, with construction expected to start in the second quarter of 2017.
Previous studies for the Kola project envisaged a phased development, with Phase 1 entailing the mining of one-million tonnes of ore a year, for a period of four years, and the Phase 2 operations increasing output to two-million tonnes a year.
“The commencement of the BFS at Kola, our flagship project, marks the final phase of the project development for the company before construction and is a major milestone achieved in what is clearly a difficult macroeconomic environment,” said Elemental CEO John Sanders.
“We expect the BFS for Kola to further highlight the exceptional quality of this sylvinite project and its ability to support very attractive returns on investment and an operating cost that is unparalleled, underpinned by the quality, shallow depth and location of the deposit.”
The Dougou PFS, meanwhile, was scheduled to be completed in the second quarter of 2016, along with an environmental- and social-impact assessment. This would culminate in the application for a mining licence.
Sanders said Elemental anticipated excellent results from the Dougou PFS, taking advantage of the low gas price and the sustainability of the deposit to solution mining.
“Kola and Dougou are planned to produce a combined 3.2-million tonnes a year in the long term and should be the leading projects in an emerging and important potash province,” he added.
Sanders noted that Elemental was also progressing discussions with various interested parties regarding offtake agreements and sizeable investments in the company.