Name and Location
Dinner Hill potash project, Australia.

Client
Potash West.

Project Description
The Dinner Hill deposit is located within Potash West’s Dandaragan trough in the mid-west of Western Australia.

The scoping completed on the project is based on the Joint Ore Reserves Committee-compliant mineral resource quoted for the Dinner Hill phosphate deposit, which includes an indicated resource of 120-million tonnes at 2.8% phosphorous pentoxide, 3.1% potassium oxide and 8.2% calcium oxide.

The study envisions a staged development for the project, with the production of single superphosphate (SSP) in a standalone plant for the first five years of operation.

The ore will be processed through a beneficiation and acidulation plant. The pelletised product will be transported by road to Moora and dispatched by rail to Kwinana and/or Geraldton for local and international distribution. The processing facility will operate using sulphuric acid delivered to site from
Kwinana, Western Australia. The beneficiation plant will produce a glauconite concentrate, which will be stockpiled for later treatment.

During the fourth and fifth years of operation an integrated K-Max plant will be built and commissioned. The mining and beneficiation process will be unchanged. The installation of the plant will enable the production of phosphoric acid from the phosphate concentrate and phosphate contained in the magnetic concentrate. The production of phosphoric acid, as opposed to SSP, is viable, owing to the on-site acid plant, cheaper transportation costs and larger phosphoric acid market.

A sulphur-burning acid plant will be installed to generate the acid requirements for the plant.

The project will have a processing rate of 4.2-million tonnes a year and a mine life of about 20 years.

Net Present Value/Internal Rate of Return
The project has a net present value at a 12% discount rate of $652-million and an internal rate of return of 30%.

Value
The capital requirement for Stage 1 of the project is estimated at $136-million. A significant amount of the Stage 2 equity financing could be funded from operating cash flows.

Duration
Not stated.

Latest Developments
The project is progressing towards a definitive feasibility study.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Potash West, tel +61 8 9479 5386, fax +61 8 9475 0847 or email info@potashwest.com.au.