QUEBEC – Arianne Phosphate of Chicoutimi, QC, continues to cut costs at its Lac-a-Paul phosphate-titanium project near Lac-St-Jean. So far the company has identified savings of US$4.26 per tonne for phosphate concentrate.
According to the feasibility study of October 2013, the cost per tonne FOB Port of Saguenay was US$93.60 per tonne for its premium quality 39% P2O5 concentrate. The reduction represents a savings of almost 5% and should result in annual savings of roughly US$12.75 million, or close to US$330 million over the planned 26-year life of the mine.
Arianne said the savings came by optimizing the original mine plan. Operations will begin in the western part of the deposit where the stripping ratio will be less than originally projected. The company continues to investigate further cost reductions.
Last October the Paul zone had proven and probable reserves of 472.1 million tonnes averaging 6.9% P2O5.
The highlights of the feasibility study are posted at Arianne-Inc.com or click here.