Tag Archives: potash

Construction nears at Colluli potash project following Eritrea ministry nod

Energy minerals, Mineral project development, , , , , ,

Danakali and the Eritrean Government’s plan to put the Colluli potash mine into production is accelerating after the Eritrean Ministry of Energy & Mines accepted the project’s Notice of Commencement of Mine Development.

Acceptance of the notice is one of the conditions precedent to the financing for the Colluli project and is a positive step toward achieving financial close of the project facilities, Danakali said.

Prior to issuing this notice, the jointly-owned Colluli Mining Share Company (CMSC) had satisfied several key Colluli development preconditions including executing a Mining Agreement and having a Mining Licenses issued; submitting and obtaining approval for the Social & Environmental Impact Assessment Study and Social & Environmental Management Plans; and submitting the commercial sulphate of potash production expectations over the life of the mine.

Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite.

Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by:

  • Granting time to commence the commercial production within 36 months from submission of the notice, (mid-December 2022);
  • Consenting to the security to be granted in support of the financing; and
  • Consenting to the account structure for the financing for the Colluli project.

The notice was submitted to the ministry by the CMSC on December 17, 2019, however the process has been slower than expected due to COVID-19-related lockdowns in Eritrea.

In accordance with the Mining Agreement, CMSC has 36 months from submission date to spend $200 million within the Mining Licence Area, Danakali said.

Along with the acceptance of the notice, the ministry has also granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli Mining Licence area. This includes the Sea Water Intake and Treatment Area at Anfile Bay (WITA); pipeline and access corridor of 87 km between the WITA and the Colluli process plant; and Colluli site access road of 57 km connecting Colluli to Marsa Fatuma.

Niels Wage, CEO of Danakali, said: “This year, the project team has made significant progress through management of DRA during Phase 1 and 2 of the EPCM works and most recently by commencing the necessary test works, enabling us to maintain forward momentum of the project development.

“I look forward to updating the market on the progress of our project in due course.”

The company has previously said production could commence in 2022.

Gensource signs up K-UTEC, Koeppern and Ebner for Tugaske potash project

Comminution of minerals, Energy minerals, Mineral processing, Mineral project development, Mining equipment, Mining services, , , , , , , , , , , , , ,

Gensource says it has engaged a consortium of world-class potash process design and equipment fabrication companies to work together to provide a design-supply-commission package for the entire process plant at the Tugaske potash project, in Saskatchewan, Canada.

The kick-off of engineering work for the major process equipment package is another milestone for the project, the fertiliser development company said.

Gensource previously announced advances in the development and financing of the Tugaske project, with KfW IPEX-Bank and Société Générale, joint lead arrangers for the project debt, nearing completion of their due diligence process.

The total senior debt financing for the project is expected to be supported by export insurance coverage with the German Export Credit Agency (ECA), Euler Hermes.

To satisfy a significant portion of the German export requirement, Gensource has elected to work with a consortium of three German-based design and equipment fabrication companies, namely: K-UTEC AG Salt Technologies, Koeppern GmbH & Co KG and Ebner GmbH & Co KG.

“Individually, these companies represent world-class capabilities in their specific areas of expertise, whether in the design of potash and salt processing plants or the design and fabrication of equipment,” Gensource said.

Together, the three companies known as KKE have the capability to supply the entire main process plant in a single design-supply-commission package, the company said.

K-UTEC AG Salt Technologies will look at the physical chemistry, overall process development and engineering, including practical bench scale testing, for the project; Koeppern will be engaged for drying, compaction, and screening process design and compaction equipment design and manufacture; and Ebner (tour of Ebner fabrication facility in Eiterfeld, Germany, pictured below) will be in charge of cooling crystallisation process design and crystallisation equipment design and manufacture.

“Based on the combined experience and capabilities of KKE, Gensource saw an opportunity to not only work with these top-tier companies and have this work qualify for ECA coverage, but also to simplify the number of project interfaces by packaging the entire process plant into a single design-supply-commission contract package,” Gensource said.

“Together, these companies provide a complete solution: from receiving the raw brine from the solution mining wellfield all the way through to a final potash product, meeting the off-taker’s specifications, ready for storage and shipping.”

Additionally, by packaging the entire process plant into one export contract, Gensource says it de-risks the project through obtaining a process guarantee from KKE for product quality and process plant throughput.

To advance the scope on this process plant package, Gensource has initiated the first phase of engineering with KKE, which will start the detailed process and equipment design, leading to the fabrication and ordering of key equipment for the process plant.

Advancing the scope of this package supports a development timeline that targets production from the Tugaske project in late 2022, supplying product to Tugaske’s off-taker and future equity partner, Helm Fertilizers.

The efforts of the KKE group will be integrated into the project by Gensource’s key project delivery partners: Engcomp Engineering & Computing Professionals, the lead engineering and design consultant for the project; and South East Construction (SEC), the general construction contractor for the project, it said.

“Together, Gensource, Engcomp, and SEC are acting as an integrated team, responsible for the overall execution and delivery of the project,” Gensource said, explaining that both Engcomp and SEC were seasoned engineering and construction professionals in the Saskatchewan potash industry.

Mike Ferguson, President & CEO of Gensource, said: “The three companies of the KKE group have unrivalled global experience in the potash and salt industries and bring their tremendous know-how, experience and proven track record of success to our project.

“Together with Gensource, Engcomp, and SEC, KKE rounds out the world-class potash team that we have established, which will no doubt deliver a world-class sustainable potash production facility in Saskatchewan via the Tugaske project.”

Like other Gensource module designs, the Tugaske project will produce a minimum of 250,000 t/y of saleable muriate of potash product.

Wirtgen 220 harvester up and running at Kalium Lakes’ Beyondie potash project

Energy minerals, Mine operation news, Mining equipment, Mining services, , , , ,

Kalium Lakes has commissioned a recently delivered salt harvester from Wirtgen at its Beyondie Sulphate of potash project (BSOPP) in Western Australia.

The Wirtgen harvester was selected after extensive trials using different harvesting methods and machinery as part of Kalium Lakes’ 10 ha pilot scale ponds program, the company said.

The Wirtgen 220 can produce up to 600 t/h of harvested salts at a consistent floor height and grain size, according to Kalium Lakes.

Those salts harvested are transported to the nearby purification plant for processing into a final sulphate of potash product, the company explained. Similar Wirtgen harvesters are in use in other salt mining operations around the world.

Earlier this week, Kalium Lakes awarded the engineering procurement and construction contract for the 90,000 t/y SOP processing plant at the BSOPP to DRA Global.

The commissioning of the Wirtgen 220 also allowed the company to confirm several operational parameters including salt pavement thickness, harvesting methodology, expected grain size and the estimated timeframes to drain the evaporation pond of brine, harvest, refill with brine and recommence salt crystallisation, Kalium Lakes said.

Managing Director, Brett Hazelden, said: “As we approached the milestone of 30,000 t of SOP brine pumped into our evaporation ponds, it was a timely opportunity to commission the harvester on site and confirm the operational assumptions.

“This very impressive machine has been specifically designed to generate a certain product size to enable the downstream purification plant to operate efficiently. It is also pleasing to see our operation completing another first for the SOP sector in Australia, as we continue to develop this new industry aimed at supplying our local Australian farmers.”

Veolia crystalliser technology to help Salt Lake Potash produce SOP

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Veolia Water Technologies says it has been contracted by Salt Lake Potash to supply HPD® crystallisation systems for its Lake Way potash mining project in Western Australia.

The systems will help the company produce a high-quality sulphate of potash (SOP) fertiliser, it said.

Salt Lake Potash is developing Lake Way into a 245,000 t/y SOP (K2SO4) operation, with first production expected by the end of the year. To recover low-cost, high-grade SOP, the production uses solar evaporation to concentrate the hypersaline, potassium-rich brines for salt harvesting, according to Veolia.

To further process these solids, Veolia will design and supply two HPD crystallisers: one to grow 32 t/h of high-purity potassium sulphate crystals, the other to recycle 54 t/h of solids to yield the maximum potassium recovery.

As part of this contract, Veolia provided bench-scale testing at its Phillip J. Stewart Technology centre in Plainfield, Illinois (USA). The results validated the feed chemistry, simulated the optimal flowsheet design, and confirmed process performance projections that helped to de-risk the project, according to the company.

To accelerate this fast-track project and achieve the delivery schedule, Veolia staged the progress to advance the basic engineering and testing simultaneously, it said. “These actions not only optimised capital investments but also lowered operating costs through a system design that minimises fouling and cleaning requirements,” the company explained.

Jim Brown, CEO of Veolia Water Technologies Americas, said: “We are pleased to support Salt Lake Potash in delivering natural fertilisers to a market hungry for specialty potash nutrients. Based on test work, which confirmed the process viability, our reliable proven crystalliser technology will help the flagship Lake Way project set the industry benchmark in producing high-grade SOP.”

With its HPD technologies tailored to growing fully-soluble crystals, Veolia helps global fertiliser producers optimise their recovery operations and the value of its product portfolio with a focus on enhancing environmental sustainability as well as energy and resource efficiencies, it said.

Herrenknecht heralds ‘game changer for shaft sinking in soft and medium-hard rock’

Energy minerals, Explosives and blasting, Mine shafts and equipment, Mineral project development, Mining equipment, Mining services, , , , , , , , ,

Having successfully excavated two 8-11 m diameter blind shafts using Shaft Boring Roadheaders (SBRs) at the BHP-owned Jansen potash project, Herrenknecht is leveraging all the lessons it learnt in Saskatchewan, Canada, to ensure this technology proves to be a “game changer” for the sinking of shafts in soft and medium-hard rock.

Mining contractor DMC Mining Services used two SBRs to excavate the blind shafts at Jansen, with the successful project completion acting as proof of the feasibility and advantages of the Herrenknecht SBR concept for the mining industry, according to the Germany-based company.

In August 2018, the mining industry milestone was achieved with the successful completion of two blind shafts to depths of -975 and -1,005 m, respectively, at the Jansen potash project. For the first time, shafts in the mining business were sunk using only mechanical excavation for this reference project.

Two Herrenknecht SBRs excavated the ground by a partial-face cutting method, using a cutting drum mounted on a telescopic boom. The excavated rock was then conveyed from the bench by an innovative pneumatic mucking system (PNM) and transferred into muck buckets to be hoisted to surface, the company said.

An innovative laser navigation system designed by the Herrenknecht subsidiary, VMT Group, using target units mounted on the SBR and lasers connected to the shaft wall, was used to keep the machines on track.

Herrenknecht, with its experience as a technology leader in mechanised tunnelling, developed the SBR for the mechanised sinking of blind shafts in soft to medium-hard rock. Based on the proven technology of the Herrenknecht Vertical Shaft Sinking Machine (VSM), the SBR offers improved safety performance compared with conventional shaft sinking methods while also achieving higher advance rates, according to the company.

The geological conditions at Jansen, however, were anything but easy. At a depth of around 450 m, the SBR encountered a layer of extremely hard competent rock causing excessive pick wear and low rates of advance. To overcome this and some further hardness challenges, the cutting drum was upgraded to a hard-rock cutting drum and torque output was doubled.

Because an existing high-pressure underground waterway, known as the Blairmore aquifer, posed a risk for water ingress into the shaft, ground freezing was executed temporarily in 2011 by BHP to a depth of approximately 650 m.

A major success in this difficult geology was the use of a mechanical ring erector, which allowed the installation of steel tubbing segments with minimal risk to personnel and a high degree of accuracy, according to Herrenknecht. The steel liner rings were installed through the Blairmore aquifer to assist in the development of a composite steel and concrete watertight liner in both shafts.

Since the project-specific design changes at Jansen required modifications to the SBRs, Herrenknecht, together with contractor DMC Mining Services, refined the SBR technology over the long term. The result is the second generation of Herrenknecht SBR technology.

As an example, the second generation SBR is equipped with an additional stabilisation level that allows the fixation of the SBR centre pipe on both ends. This ensures a stable transfer of the reaction forces from the cutting process to the shaft wall without movement of the machine – even with fluctuating excavation diameter of 8-11 m, as encountered at the Jansen potash project.

In addition to an improved filter system, a new design of the PNM system was installed in the second-generation machine, which results in a higher degree of separation in the suction tank itself, allowing wet material and even water to be handled.

Martin-Devid Herrenknecht, General Manager Mining at Herrenknecht, said: “The technical development of the second SBR generation is based on the lessons learnt from the Jansen project.” Two SBRs of this generation are currently in operation in Belarus and achieving good performance as a result of the improvements made, Herrenknecht said. “This pioneering approach is certainly a game changer for shaft sinking in soft and medium-hard rock, impacting the whole mining industry,” he said.

After the successful excavation at Jansen, another task was to be managed: the disassembly of the huge machines in the deep shafts. To remove the SBR from the shaft bottom, it was necessary to reduce the weight of the machine from 390 t to 340 t. This was achieved by stripping all components off the SBR that were in the excavation chamber. Both SBRs were safely extracted from the two shafts at the Jansen potash project in May 2019.

The Jansen potash project, located approximately 140 km east of Saskatoon, Saskatchewan, is a BHP-owned future potential potash mine with an expected initial mining output of around 3-4.5 Mt/y with valuable expansion options.

Newhaul Bulk JV to serve Mackay potash project in Western Australia

Energy minerals, Mineral project development, Mining services, , , , , , , ,

Agrimin and Newhaul Pty Ltd have formed a 50:50 incorporated joint venture named Newhaul Bulk Pty Ltd to provide road haulage and maintenance services for the Mackay potash project in Western Australia.

Craig Mitchell, the Founder and Former Owner of Mitchell Corp, one of the largest suppliers of trucking and bulk logistics services to Western Australia’s mining industry prior to being acquired by Toll Group in 2011, has been appointed CEO of the new joint venture.

The JV will provide Agrimin with benefits, including:

  • The potential for cost savings over the project’s 20-year life through the elimination of management role duplication, sharing the benefits of innovation and maximising locally sourced labour;
  • De-risking product haulage by using a proven Western Australia bulk logistics operator, while retaining control of the logistics chain;
  • Greater transparency relating to a future haulage contract; and
  • Development of driver training programs in order to maximise the opportunity to use local and Indigenous truck drivers.

The establishment of Newhaul Bulk, in partnership with an experienced operator, represents a significant milestone in the risk management and reduction of costs in relation to Agrimin’s future product haulage, Agrimin said.

The contract terms relating to the provision of haulage services for the initial 20-year project life are to be agreed in due course and, pursuant to a future haulage contract, to be executed between Agrimin and Newhaul Bulk.

Newhaul Bulk’s haulage operation is planned to include a fleet of around 24 road trains to transport 426,000 t/y of potash from Lake Mackay to Wyndham Port, where Agrimin’s proposed shiploading facility will be located.

“Newhaul Bulk has been established with the clear objective of maximising the employment of local and Indigenous people involved with the haulage of Agrimin’s potash production,” the company said. “A plan to achieve this includes the development of driver training centres and job readiness programs in regional communities, including Kununurra and Halls Creek.”

ICL Boulby hits record polyhalite production in November

Energy minerals, Mine operation news, , , , , ,

ICL Boulby has revealed record-breaking figures for November, with the east Cleveland mine (UK) well on track to hit 1 Mt of polyhalite production next year, before reaching up to 3 Mt by 2030.

As it approaches the end of the first full year since becoming the world’s first and only producer of polyhalite, the company said the mine hoisted and processed over 75,000 tonnes last month.

The decision to make the transition to polyhalite, marketed as Polysulphate – which contains four nutrients vital to plant growth – was made as economically viable reserves of potash, which had been mined for over 40 years, neared exhaustion, according to ICL Boulby.

Demand for the Boulby products has grown rapidly and now is being used by farmers and growers across five continents, the company said.

General Manager and Vice President, Andrew Fulton, said: “This has been a vital year for everyone involved with Boulby – the workforce at the mine, our distribution and processing terminal at Teesport, and all those involved in marketing and developing a growing range of polyhalite-based products.

“It is their united effort which enabled us to reach our November hoist target of 75,000 t with 30 hours to spare.

“Achieving the rapid progress we have made throughout the year has involved everyone being prepared to meet the challenges of accepting new operating techniques and processes, coupled with strong support and investment from our parent company.”

BHP’s Jansen potash project set for early-2021 investment decision

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While uncertainty remains around the construction of BHP’s Jansen potash project in Saskatchewan, Canada, the company, in its September quarter results, confirmed it is still spending money on the asset prior to making a development decision.

BHP said the Jansen Stage 1 potash project will be presented to the board for a final investment decision by February 2021. The currently Stage 1 plan, which is in the feasibility study stage, involves building out initial capacity of 4.3-4.5 Mt/y of potash, with expansion optionality.

The miner has, so far, committed to spending $2.7 billion on the project. This is expected to result in the excavation and lining of the 7.3 m diameter production (975 m deep) and service (1,005 m deep, pictured) shafts – sunk by DMC Mining using Herrenknecht’s Shaft Boring Roadheader – and the installation of essential surface infrastructure and utilities. The overall Stage 1 project is expected to have a capital outlay of $5.3-5.7 billion.

In the September quarter results, BHP said in order to make a final investment decision, work on engineering to support project planning and on finalising the port solution is required. The BHP Board has, as a result, approved $144 million of spending for these activities, with an additional $201 million in funding set aside to further de-risk the project. The latter is focused on the mine’s scope of work, advancing other engineering and procurement activities, and preparation works for underground infrastructure, it said.

“This will enable an efficient transition of the project team between the study and execution phase, should the project be approved,” BHP said, adding that the release of funding to the project will be staged over this period.

The company, meanwhile, gave an update on its South Flank iron ore development, in the Pilbara of Western Australia, with CEO Andrew Mackenzie saying the project was 50% complete, with all major items on schedule and budget.

South Flank, which is expected to cost $4.6 billion to build, is set to replace production from the existing Yandi mine, which is reaching the end of its economic life. BHP is targeting first ore extraction at the operation in 2021 and expects to ramp up to 80 Mt/y of output.

Kalium Lakes locks in Beyondie gas pipeline, SOP purification plant contracts

Energy minerals, Industrial minerals, Mineral processing, Mineral project development, Mining equipment, Mining project news, Mining services, Power supply for mines, , , , , , , ,

Kalium Lakes has been on a contract spree, announcing the award of four contracts in the past week that will move its Beyondie sulphate of potash project, in Western Australia, closer to production.

On Monday, it announced contract awards for the design, supply and construction of its fully-owned gas lateral at the project with Edgen Murray set to manufacture and supply 79.4 km of coated linepipe, Pipecraft to carry out the gas pipeline installation and Primero to design and construct the inlet and delivery station.

This followed, in June, the company securing key contracts with APA Group and Shell Energy Australia for the transportation and supply of gas to meet the requirements of the project.

On Wednesday, the company then confirmed that it had awarded DRA Global’s G&S Engineering a circa-A$20 million ($13.5 million) contract to build the sulphate of potash purification plant at the operation.

The scope of the contract includes completion of all works associated with civil and concrete construction; structural steel assembly and erection; mechanical equipment assembly and installation; platework assembly and installation; piping installation; electrical, instrumentation and controls installation; dry commissioning, and wet commissioning support services in cooperation with Ebtec.

The project aims to commence production at 90,000 t/y of sulphate of potash, before ramping up to 180,000 t/y for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life and high margin producer, Kalium Lakes says.

Kerman to work on Wyndham Port facility for Agrimin Mackay potash project

Energy minerals, Industrial minerals, Mineral project development, Mining services, , , , ,

Having recently selected a suitable export site at Wyndham Port for its Mackay potash project in Western Australia, Agrimin has awarded Kerman Contracting the engineering design contract for the facility.

The Wyndham port facility is planned to include a truck unloading hopper, covered storage sheds, granulation equipment, workshops and offices, with Kerman selected on the basis that it has suitable experience and capabilities to undertake both the engineering design and subsequent construction of the above aspects of the facility.

Agrimin said it intends to engage a separate contractor for the design and construction of the associated barge loading facility, while geotechnical and topographic work programs had been completed at the site, with Kerman having commenced the engineering design for the definitive feasibility study.

A prefeasibility study for the Mackay project, 785 km south of the Port of Wyndham, envisaged the process plant having a capacity of 426,000 t/y of sulphate of potash as a dry granular product, with the same study assuming a product mix of 50% granular and 50% standard product.

Kerman, earlier this month, was awarded a contract by Albemarle Lithium on the greenfield lithium hydroxide production plant in Kemerton, Western Australia.