South Boulder publishes PFS for Eritrea potash project
PERTH (miningweekly.com) – The prefeasibility study (PFS) into the Colluli potash project, in Eritrea, has estimated that the project would require an initial investment of some $442-million. The PFS examined a two-module development with an expected production of 425 000 t/y
The PFS examined a two-module development with an expected production of 425 000 t/y sulphate potash for the first five years of operation, increasing to 850 000 t/y for the remainder of the proposed 30-year mine life.
During Phase 1 operations, the Colluli project was expected to have a net present value of $462-million and an internal rate of return of 22.3%, which would increase to $845-million and 24.7% respectively at the start of Phase 2operations.
The PFS was based on a 1.28-billion-tonne resource, containing some 152.7-million tonnes of potassium oxide.
Openpit mining would be conducted using conventional truck and shovel methods to access the ore, and average total cash cost for Phase 1 has been estimated at $210/t, dropping to $189/t during Phase 2.
First production was slated to start in 2018.
South Boulder and its joint venture partner Eritrean National Mining Companyhad taken the decision to move the project to the definitive feasibility study (DFS) stage by the third quarter of this year.
“We have already commenced optimisation testwork for the process plant and as we continue the DFS work, we will further advance conversations with strategic partners to assist with development of this globally significant project,” said Donaldson.
EDITED BY: MARIAAN WEBB