Canada’s Karnalyte still pondering Proteos Nitrogen Project

LONDON (ICIS)–Karnalyte Resources on Friday said its Proteos Nitrogen Project remains under consideration amid encouraging results from a pre-feasibility study, with the Canadian company searching for strategic partners.

The proposed regional-scale nitrogen fertilizer plant in central Saskatchewan would feature a nameplate capacity of 700 tonnes/day of ammonia and 1,200 tonnes/day of urea.

The supplier’s primary target market would be local, independent wholesalers within a 400-km radius of Saskatoon, with a secondary target market of Midwest US wholesalers near the border, the firm disclosed.

A pre-feasibility study was initially prepared by Karnalyte’s strategic partner and largest investor, Gujarat State Fertilizers and Chemicals Limited (GSFC), and ultimately updated and completed by Karnalyte.

GSFC is one of India’s leading fertilizer and chemical fertilizer manufacturing companies, with more than five decades’ experience in the production, sale and distribution of nitrogen fertilizer.

“Karnalyte is encouraged by the results of the pre-feasibility study and similar to potash, nitrogen fertilizer prices have also been on a rally in recent months due to a supply/demand gap in the US due to an increase in cropland planted areas and an increase in demand from China,” the firm said.

“Karnalyte will continue to seek strategic partners for the Proteos Nitrogen Project and to consider it with discipline and caution due to the significant capital expenditures required to move the project forward.

“Included in the scope of work for the strategic review, is an independent review of the pre-feasibility study, the results of which will be announced when the market sounding phase of the review is complete.”