TORONTO (miningweekly.com) – An optimisation study has identified a cost reduction of almost 5% with regard to the planned phosphate concentrate production at Quebec-focused project developer Arianne Phosphate's Lac-à-Paul project, in Quebec.
Arianne's October 2013 feasibility study expected the free-on-board Port of Saguenay cost of $93.60/t for its premium quality 39% phosphorus pentoxide (P2O5) concentrate.
However, the latest optimisation study had found a $4.26/t cost reduction, which could result in yearly savings of about $12.75-million, or close to $330-million over the planned 26-year life-of-mine.
Arianne said on Wednesday that it had optimised the original mine plan and now planned to start operations on the western part of the deposit, thereby, improving the stripping ratio and allowing the company to adopt a different schedule on material waste handling.
"This significant reduction in our mining costs strengthens the economics of our project and moves us even lower on the cost-curve, improving our competitive advantage. Lac-à-Paul is the world's largest greenfield phosphate rock project and will produce one of the highest purity concentrates commercially available. These cost improvements will save hundreds of millions of dollars over the life-of-mine and make our project even more attractive,” Arianne COO Jean-Sébastien David said.
After releasing its feasibility study, Arianne launched the cost optimisation programme to reduce the company's operating costs. In addition to optimising the mine plan and cost savings from reagent consumption, Arianne was currently looking into several other initiatives that it believed might be able to further reduce its operating costs.
In about two weeks, Arianne expected to make a presentation on the environmental impact and economic benefits related to its Lac-à-Paul phosphate project to the Bureau d’audiences publiques sur l’environnement, an independent provincial government agency, marking the start of Arianne’s public information and consultation process to receive environmental permitting for Lac-à-Paul.