17 September 2013 23:06 [Source: ICIS news]
HOUSTON (ICIS)--Potash West said on Tuesday that its recent scoping study has produced positive results for its goal of beginning single superphosphate (SSP) mining production at its Dandaragan Trough project.
The Australian company’s flagship project, the Dandaragan Trough, is north of Perth in Western Australia, and it is considered one of the world’s largest greensand deposits of phosphate. Potash West said it has the ability to eventually produce over 340,000 tonnes/year of SSP from the operations.
Company officials said the project also has several key advantages, including low mining cost and well established infrastructure. Due to the extensive nature of the phosphate deposit, if the project is successful, the scale could be substantially increased, especially as regional markets grow.
“Capturing the full value of the phosphate allows a viable independent phosphate facility to be considered,” said Patrick McManus, managing director. “The lower capital required and proven established process technology required for the superphosphate plant will provide a route to positive cash flow that will reduce dilution for existing shareholders.”
McManus said the next step for the project will be the preparation of a feasibility study and the commencement of an economic assessment. The company estimates that capital cost would be around $144m (€108m) but that the operations could see revenues of $131m/year.
($1 = €0.75)
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