Potash Ridge Corporation, a near term producer of premium fertilizer in North America is pleased to announce that SNC-Lavalin has been engaged to conduct an environmental scoping study for the Corporation's wholly-owned Valleyfield Project.
The study is being conducted to prepare for an application to the Quebec Government for Environmental Certification of the proposed Sulphate of Potash ("SOP") conversion facility using the Mannheim Process. The application is scheduled to be submitted early this summer, and following acceptance of the application there is a minimum 90-day process period before the Environmental Certification can be granted.
Valleyfield's strategy is to become the first SOP producer in North America utilizing the proven Mannheim process. The Mannheim process has been extensively used in Europe and Asia for many years, and currently accounts for approximately 40% of the world's SOP supply. Valleyfield represents an exciting opportunity for the Corporation, as it has a low capital cost, near term production, and a robust rate of return.
In November 2015, SNC was engaged to conduct a capital and operating budget study for Valleyfield. SNC's engineering study encompassed the construction and operation of a 40,000 tonnes per year SOP facility demonstrating solid economics. The estimated total capital cost of the facility is Cdn$48.8 million.
The Corporation is now focused on obtaining the required environmental and construction permits, entering into SOP off-take arrangements, securing project financing, with a target of commencing construction later in 2016, and beginning production in late-2017.