Green light for Canadian firm’s Utah potash mine
The US has authorised the construction of Canadian developer Crystal Peak Minerals’ 298 000 t/y sulphate of potash (SoP) mine, in west-central Utah.
The Department of Interior's record of decision (RoD) for the Sevier Playa project has been hailed as the company’s “most important milestone” and now allows Crystal Peak to speed ahead with financing and offtake negotiations.
BNP Paribas has been hired to advise on securing debt financing for the project and Crystal Peak is yet to decide on an adviser to assist with obtaining the required equity financing.
The Sevier Playa project will require a total of $412-million to construct, a November 2018 feasibility study has found. The project has an estimated net present value of $730-million (after tax, inflated, 8% discount rate) and an estimated internal rate of return of 21%.
“As one of the few greenfield SoP projects approved in the world, we are absolutely thrilled,” CEO John Mansanti said this week.
In consultation with its advisers and prospective financiers, Crystal Peak has been working on optimisation opportunities and engineering required to develop the project. In parallel, the company is engaged with several offtake candidates with strong North American and global distribution.
The feasibility study includes a proven and probable produced mineral reserve of 6.17-million tonnes of potassium sulphate.
Crystal Peak is targeting the production of specialty fertilisers and related products through brine extraction and the use of a cost-effective solar evaporation process. SoP and other specialty fertilisers are used in the production of high value, chloride-sensitive crops such as fruits, vegetables, and tree nuts.
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