SASKATCHEWAN – Encanto Potash Corp. of Vancouver has developed a strategic plan to advance its proposed potash solution mine located on Muskowekwan First Nation land to shovel ready status.
Encanto president CEO Stavros Daskos and Muskowekwan Chief Reginald Bellerose walk the site of a new proposed potash solution mine in Saskatchewan. (Image: Encanto Potash)
Since Richard Lively joined the company earlier this month, Encanto has outlined what it will take to move the project forward for the next 16 months. The projected cost to finalize the environmental impact statement, feasibility study, and front end engineering and design work will be $32 million. That represents a 40% reduction compared to previous estimates.
“In addition to the proper solution mine design, we are actively reviewing the vital components of the project such as optimal power generation strategies, shipping logistics, as well as water infrastructure cost reductions through additional First Nation partnerships,” said Lively. “For increased revenue streams, we are exploring the possibilities of exporting the expected salt by-product for various applications from consumer edible to industrial road salts.”
Encanto says, based on his most recent evaluations, it can maintain a lower pre-production capex that previously anticipated by avoiding costly overruns and duplication of work. The decreased capex cost provides flexibility to the project in view of the tight markets. The company has agreements to sell 7 million tonnes of potash annually to a pair of customers in India.
Further information on the planned mine is available at www.EncantoPotash.com.