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Mackay sulphate of potash project, Australia

16th September 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name of the Project
Mackay sulphate of potash (SOP) project.

Location
The project covers the greater area of Lake Mackay, which is located in Western Australia.

Client
Agrimin.

Project Description
A scoping study on the Mackay SOP has confirmed the project’s potential to become a world-class SOP operation.

The project has indicated mineral resources of 4.3-million tonnes and inferred mineral resources of 18.9-million tonnes of SOP based on specific yield. These mineral resources have been defined to an average depth of 24.7 m. However, the study incorporates brine extraction from only the top 5.5 m of the deposit.

SOP production begins with pumping brine from trenches into a series of solar evaporation ponds. The project will dry-harvest crystallised potassium salts from the ponds. The process route entails flotation followed by crystallisation for SOP recovery.

The process plant has been designed for a production target of 370 000 t/y of SOP.

The key operating assumptions that underpin the production are target a brine production rate of 66.5 Gt/y over a 20-year mine life, at an average potassium concentration of 3.603 mg/l of brine, and an average overall potassium recovery of 69.3%. Pure SOP contains 44.87% potassium by weight.

SOP products will be transported in bulk by road to trains to a rail load-out facility in Alice Springs and then railed to one of the port options for shipment.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The scoping study has estimated development capital at $259.4-million, including a 25% contingency on all direct and indirect line items.

Duration
Based on a final investment decision and securing financing, the project’s construction and ramp-up are estimated to take 24 months to reach full production.

Latest Developments
Agrimin has approved the progression to a prefeasibility study (PFS).

The company has started an infill drilling programme aimed at upgrading the indicated and inferred mineral resources in the study’s production plan to measured and indicated categories. The current field programme is also designed to provide key datasets for project permitting and the PFS.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Agrimin, tel +61 8 6141 6304 or email admin@agrimin.com.au.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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