HOUSTON (ICIS)--Arianne Phosphate has secured a power agreement with the Ministry of Energy and Natural Resources for its Lac a Paul phosphate project in Canada, the fertilizer producer announced on Wednesday.
The Quebec-based company said that the electricity agreement is quite favourable for the economics of the fertilizer project and under the terms finalised will provide 115 megawatt block of power at a preferential industrial sector rate from Hydro-Quebec.
Arianne’s flagship project is the Lac a Paul site, located north of the Saguenay area in Quebec, where studies have stated the resources will support a minimum mine life of 25.75 years with the producer targeting a production commencement in 2017.
Company officials said the reduced spending on power will assist the efforts to produce phosphate at favourable operating cost.
“This agreement continues to demonstrate the Quebec government's support for the Lac a Paul Project and is further evidence of the significant economic benefits that Lac a Paul will bring to both Quebec and the Saguenay-Lac-Saint-Jean region. We would like to thank the government of Quebec for their continued support of our world-class project,” said Jean-Sebastien David, Arianne COO.