HOUSTON (ICIS)--Canadian fertilizer producer IC Potash (ICP) announced on Wednesday it has appointed Mitsubishi UFJ Financial Group (MUFG) as the financial advisor for its sulphate of potash (SOP) Ochoa Project in southeast New Mexico.
MUFG, acting through its wholly owned banking subsidiaries, the Bank of Tokyo-Mitsubishi UFJ and Union Bank, will provide advice with respect to project financing, including both debt and equity.
Toronto-based ICP officials said that the company is one of the most active project finance banks in the world and will advise ICP in the development of financing plans including the determination of appropriate commercial engineering, off-take arrangements as well as assist with estimating such factors as capital costs and pricing.
ICP is focused on the mining of polyhalite to process into SOP at its Ochoa Project, which will consist of an underground mine with surface processing facilities. SOP is a non-chloride based fertilizer and is considered a premium potash product that is primarily utilised in the growth of fruits and vegetables.
The company has projected there will be approximately $1bn in start-up capital costs, with three years of construction set to begin in Q2 2014 and production set to start in Q2 2017.
ICP said lead arrangers for project finance will be selected by Q3 2014 and that other financing relationships may involve various export credit agencies and equipment leasing arrangements.