With its recent addition of Richard Lively, Encanto claims it has value engineered and identified the expected costs to be incurred over the next 16 months to bring the project to a construction start. The projected engineering cost to finalise the EIS, feasibility study and complex front-end engineering and design will be $32 million, representing a 40% reduction versus previous estimates.
After Lively’s review of the upcoming work, while carrying out a thorough comparison to recent potash projects over the last five years, the company expects that it can maintain a lower CAPEX cost than it expected previously, while protecting the project versus costly overruns and work duplication.
Lively said: “I have reviewed both classical and the newest of extraction technologies for solution mining and feel confident in the present strategy to deliver both a CAPEX and OPEX that will allow for margin elasticity.”
In addition to the proposed solution mine design, Encanto claims that it is actively reviewing the vital components of the project, such as optimal power general strategies, shipping logistics, as well as water infrastructure cost reductions through additional First Nation partnerships. For increased revenues streams, the company claims it is exploring the possibilities of exporting the expected salt by-product for various applications from consumer edible to industrial road salts.
In the statement, Encanto claims that the expected decreased CAPEX cost will enable its junior mining company to be flexible with the tight potash market throughout, servicing the 20 year 5 million tpy offtake demand signed with the National Federation of Farmers’ Procurement, Processing, and Retail Cooperatives of India Ltd. In addition to this, the company claims that it has signed an agreement to provide 2 million t of potash for global distribution with the Metals Minerals and Trading Co. of India, which is owned by the Indian Government’s Ministry of Commerce.
Read the article online at: https://www.worldfertilizer.com/potash/04062018/encanto-to-move-potash-project-forward/