New potash mine advances to the drawing board

Our site plan is done, an environmental assessment has been approved and our work is widely supported by a rural community that would benefit from jobs and investment.

After three of years establishing a solid base, our Kronau Project team in Saskatchewan is moving ahead with construction planning for our proposed new potash solution mine – the final stage to determine feasibility of what would be a major Vale operation.

“It’s an exciting time for our entire team, as well as for all our community partners who have helped us reach this stage. I’m looking forward to leading the Kronau Project team as we ramp up to complete this important next phase,” said Michael O’Sullivan, our new executive project leader who has helped guide strategic new projects for Vale around the globe.

During the FEL 3 study stage, engineers will create basic engineering drawings and the detailed plans needed to begin construction. The scope includes designing the mine and utilities, a processing plant in Kronau, rail transportation plans and port operations in Vancouver.

“It will take about one year to complete this final feasibility stage,” said O’Sullivan. The outcome of their work will help Vale determine whether it’s viable for us to proceed, a decision expected to be made around the end of 2015.

If the project goes ahead – depending also on the state of global economic markets and possible partner agreements – work would be slated to start in 2016 for mine production in 2019.

About 2,000 people would be employed during construction, creating about 350 permanent positions once operations were to begin.

As a key mineral used in fertilizers for food production, global demand for potash is expected to increase. Some 40 per cent of the world’s potash is in Saskatchewan and Vale estimates that Kronau could supply around 3-4 million tonnes per year, over more than 40 years.

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