Arianne Phosphate receives updated engineering study for Canada phosphate project
HOUSTON (ICIS)–Canadian firm Arianne Phosphate announced it has received an updated engineering study regarding the projected capital expenditure for its Lac a Paul phosphate project in Quebec, with the cost for the project now estimated to be approximately $1.55bn.
Arianne said given recent uncertainties and cost overruns facing many mining construction projects it engaged in the study, which was undertaken in late 2022 and early 2023 by LCO Construction & Management Consultants.
The study focused solely on the capital expenses as the construction, mining and transportation plans for Lac a Paul remain the same, as does Arianne’s statement of mineral reserves.
The estimate also includes required infrastructure upgrades, including a hydroelectric transmission line from dam to site and a ship-loading facility on the north shore of the Saguenay river.
“This report should go a long way towards dispelling the view that our CapEx has appreciated to the point of significantly diminishing our project,” said Brian Ostroff, president of Arianne.
“While cost overruns due to inflationary pressures, supply chain issues and procurement have affected most projects and, investors now factor in cost increases of 50-100% into their models, a less than 30% increase from our last reported number should be most welcomed.”
Ostroff said it is also worth highlighting that although the estimates are higher since the last report, the price of phosphate and the benefits of the US and Canada exchange rate have risen as well.
Arianne anticipates that the mine will produce 3m tonnes a year of high-purity phosphate concentrate.
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