Junior miner Gensource Potash Corp., Saskatoon, said on Aug. 9 that it has received a determination from the Saskatchewan Ministry of Environment that its Vanguard One project some 150 km northwest of Regina is “not a development,” and is not required to complete a full Environmental Impact Assessment (EIA).
Gensource President and CEO Mike Ferguson said this was a fantastic outcome. “It is a decision that we anticipated due to the fact that our approach to potash mining is radically different from traditional potash projects – Vanguard One will be much more environmentally friendly, with no salt tailings and no brine ponds of any sort. This determination not only confirms one of our core values as a company – to provide a cleaner source of potash production – but it is also a crucial element to our project success, as it enables a much faster, more efficient, and cost-effective overall project development timeline.”
Gensource also noted the project’s small footprint – 22 acres – compared to a conventional potash mine. The layout can also accommodate a doubling of the initial 250,000 mt/y of production without a footprint increase. In addition, the mine is expected to have reduced impact to local utilities and infrastructure, and reduced water consumption on a per mt of product produced.
Gensource said its selective solution mining and enhanced potash recovery and process techniques drive down the operating costs per mt to a globally competitive level at approximately $40/mt.
As a result of the Ministry decision, Gensource can now proceed to the next stage of the environmental regulatory process: detailed construction licensing. Although the company must also line up project financing, this may be made easier as the company in May lined up a definitive offtake agreement with a North American diversified agricultural company for the sale of 100 percent of Vanguard One’s production for a period of 10 years (GM May 25, p. 1). As earlier reported, Gensource has another nonbinding agreement with a second North American company (GM March 23, p. 27), and has also been in negotiations to supply Brazilian consumption (GM April 20, p. 1).
Vanguard One is expected to employ 46 and utilize 150 to complete construction. It is expected to take 18-22 months to construct.