Junior potash mining firm Karnalyte Resources Inc., Saskatoon, has announced plans to diversify into nitrogen and is looking to build a small nitrogen plant in Saskatchewan.
“Karnalyte is now actively exploring the possibility of developing a small-scale ammonia/urea plant to be located in Central Saskatchewan,” said Karnalyte President Frank Wheatly. “Karnalyte has undertaken preliminary work on this opportunity, and intends to capitalize on the competitive advantages Saskatchewan provides for nitrogen fertilizer production. We also believe that the local Saskatchewan market provides an opportunity for a new, small scale, independent nitrogen fertilizer producer that will provide direct benefits to the local Saskatchewan farming community.”
The proposed nitrogen fertilizer plant will have a nameplate production capacity of approximately 700 mt/d of ammonia and approximately 1,200 mt/d urea.
The company said the project, called Proteos Nitrogen Project, has the support of its largest shareholder, Indian nitrogen producer Gujarat State Fertilizers & Chemicals Ltd., which has some five decades of nitrogen production experience.
Karnalyte is currently conducting additional research on the project, including market studies, as well as engineering and site procurement.
The company says its Wynyard Potash Project remains a construction ready project, and is poised to be developed once potash prices recover to a point where it becomes economically viable and can be financed, constructed and profitably operated.