Itafos Inc. on May 17 announced the results of the updated feasibility study for the Farim Phosphate Project, located in Guinea-Bissau, West Africa.
“The updated feasibility study confirms that the Farim Project has robust economics and demonstrates that the Farim Project has the potential to be an important phosphate producing asset,” said Itafos CEO David Delaney. “Additional new phosphate capacity and capital investment are required to meet projected phosphate global demand growth over the medium- to long-term, which bodes well for the Farim Project, as we believe it is one of the highest-grade undeveloped deposits in the world.”
Highlights included:
- After-tax net present value (NPV) (10%) of $572 million at a base case life-of-mine (LOM) average rock price of US$197.5 per mt concentrate.
- After-tax internal rate of return (IRR) of 34.9% and after-tax payback on pre-production capital expenditures of 4.2 years.
- Estimated pre-production capital expenditures of $308 million.
- LOM production of approximately 2.19 million mt/y of run-of-mine (ROM) phosphate matrix on an as-received basis (at approximately 20% moisture) or 1.75 mt/y ROM phosphate matrix on a dry basis. The assessment of mineable phosphate matrix reserves was based on a 25-year mine plan with an open pit design.
- Proven and Probable Mineral Reserves are 43.8 million mt at 30.0% P2O5.
The release of the study comes as Itafos is weighing its strategic alternatives (GM March 17, p. 1).