Agrimin Ltd. has announced the results of a prefeasibility study (PFS) of its Mackay sulphate of potash (SOP) project on Lake Mackay 785 km south of the Port of Wyndham, Western Australia. Lake Mackay is a vast salt lake, with a surface area of about 4,500 km2 on the border of Western Australia and the Northern Territory.
The Mackay project PFS calls for production of 426,000 metric tons per year (mt/y) of SOP over an initial mine life of 20 years. Cash costs of production are estimated at $222/mt of SOP FOB Wyndham. Capital costs to develop the project are estimated at $409 million, including a $53 million contingency. The payback period is forecast at 4.2 years.
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