US Environmental Protection Agency (EPA) has awarded the Fort Cady borate mine, in southern California, an underground injection control permit, owner American Pacific Borates (ABR) announced on Monday.
With the award of the permit, the ASX-listed company now has all substantive operational permits for production of borates and sulphate of potash (SoP) at Fort Cady.
“We are now less than 12 months from production of speciality fertilisers and micro nutrients to be targeted initially at the high-priced Californian fertiliser market right on our doorstep. This is another key step in our intention to become a globally significant producer of specialty fertilisers,” said ABR CEO and MD Michael Schlumpberger.
Fort Cady is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.
An enhanced definitive feasibility study (DFS), completed in April 2020, estimated that the project would produce 363 000 t/y of SoP in full production. This complemented boric acid production of 409 000 t/y.
The enhanced DFS calculated an unlevered aftertax net present value, using an 8% discount rate, of $1.97-billion, an unlevered aftertax internal rate of return of 39% and earnings before interest, taxes, depreciation and amortisation in the first full year of production of $438-million.
ABR traded nearly 4% higher in Sydney on Monday, closing at A$0.85 a share.