19 September 2013 22:04 [Source: ICIS news]
HOUSTON (ICIS)--Karnalyte Resources has received environmental impact approval from Saskatchewan regulators which will permit the company to begin acquiring construction permits for its Wynyard Carnallite potash project, the fertilizer producer announced on Thursday.
Alberta-based Karnalyte anticipates the $593m (€438.82m) project, located near Wynyard, Saskatchewan, will have an initial production capacity of 625,000 tonnes. Despite the downturn in the potash market, the company has already signed a supply agreement with Gujarat State Fertilizers and Chemicals to provide 350,000 tonnes per year of the crop nutrient.
“Meeting this condition of the Wynyard Carnallite project enables Karnalyte to pursue the permits required for plant construction and is thus a major milestone for both the project and the corporation,” said Robin Phinney, Karnalyte president.
“Karnalyte remains committed to advancing the project towards construction, commissioning and production. Our unique mineral deposit will produce a premium quality potash product with an attractive economic profile.”
The company plans to expand capacity to 2.125m tonnes per year, at which point Gujarat has agreed to purchase 600,000 tonnes per year. Gujarat General Manager Vishvesh Nanavaty said despite the short-term decline within the current market, the overall fundamentals support strong demand and future growth.
“Gujarat State Fertilizers and Chemicals is of the opinion that the current downtrend in the potash sector is a result of the combined impact of the global recession and economic uncertainty, despite the importance of this commodity in providing food supply to the developing world,” said Nanavaty.
“The company’s investment in Karnalyte is a strategic one, and we remain fully committed to the future potential of Wynyard Carnallite project, the most advanced potash greenfield project. Much progress has been made to date to move the project forward and we are very pleased with the milestones it has achieved.”
The company said it is now focused on advancing its surface and underground engineering work and preparing the future production facility site.
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