Arianne Phosphate, a development-stage phosphate mining company based in Quebec, on June 27 announced the results of s prefeasibility study (PFS) that the company commissioned in January to assess the viability of constructing a purified phosphoric acid (PPA) plant in the Saguenay region of Quebec.
The facility would be capable of producing 350,000 mt/y of PPA for use in lithium-iron-phosphate (LFP) battery production, and an additional 220,000 mt/y of secondary phosphoric acid for use in the production of specialty fertilizers and animal feeds.
The full downstream operation is projected to have an initial Capex of roughly $1.65 billion, which includes a contingency of approximately $240 million. Arianne said the Capex covers logistics for a phosphate concentrate transportation system on the south shore of the Saguenay River, an onsite sulfur plant for the production of sulfuric acid, and both a merchant grade acid and purified phos acid plant.
The PPA facility would generate revenue through the sale of finished products, which the company said includes 350,000 mt of PPA at $2,300/mt, 220,000 mt of secondary acid at $1,200/mt, and 3 million mt of gypsum at $10/mt. Arianne said the project would also generate surplus electricity that could be sold into the grid, but this has not been accounted for in the company’s internal revenue model.
Arianne said the study noted several environmental benefits of the project, including lower transport and handling associated with the igneous-based phosphate concentrate feedstock; less risk from the transport of sulfuric acid; the production of a marketable gypsum; and the capture of steam through turbines that will generate electricity.
The project’s location also creates advantages, the study noted, including easy access to high-quality igneous phosphate; a preexisting port, rail, and a road network for easy access to emerging LFP demand in Quebec, Ontario, Michigan, and the southeast US; and a highly skilled local workforce.
“Opportunities like this don’t come along often,” said Brian Ostroff, Arianne President. “Access to a high-quality phosphate concentrate, the ability to economically produce PPA for use in specialty applications, and the advent and growth of the LFP battery provide extremely compelling economics with a pre-tax NPV of over US$4.5 billion. Further, the study also demonstrates the opportunity for our Lac à Paul mine to have a local customer. In looking at the two projects in their entirety, the Arianne companies would provide enormous benefit to its stakeholders and unlock significant value for its shareholders.”