Circum Minerals has completed the definitive feasibility study on its potash project in Ethiopia’s Danakil basin. Among the findings, the study reports the project to have measured, indicated and inferred resources of 4.9 billion tonnes at 18% KCI, proven and probable reserves of 107.8 million tonnes of KCI equivalent and an expected annual production of 2 million tonnes of MOP and 750,000 tonnes of SOP for Phase I.
It’s expected the reserve will support a 26 year mine life after a 3 year ramp-up period, and have operating costs of $83.89/t for MOP and $158.95/t for SOP. The study predicts that the project will deliver an after-tax IRR of 22.4%
“The results of the DFS have demonstrated that Circum’s Danakil potash project has the potential to be one of the lowest cost, lowest capital intensity, large scale potash projects in the world with excellent economics and expansion potential,” commented Plinian Capital’s Brad Mills. “The development of the Danakil potash basin will make Ethiopia one of the world’s leading exporters of potash and related mineral salts.”
In may this year, Mineweb reported that the partners behind the Circum Minerals Potash Project were looking to raise $30 million from new investors to finance post-Definitive Feasibility value adding studies and buy out early high net worth investors.
Circum’s shareholders include Plinian Capital and African Minerals Exploration & Development Fund II SICAR (“AMED”), an African focused, natural resources private equity group.