Vancouver-based Western Resources Corp. on May 21 reported that its Board of Directors on May 17 decided to temporarily suspend operations at wholly-owned subsidiary Western Potash Corp.’s Milestone Phase I Project in Saskatchewan, so that the company can focus its efforts on discussions of additional project financing.
The company said the project is approximately 93% complete in the existing plan. Construction of the process plant has been completed and most of the equipment has been dry commissioned. Management expects that two new horizontal caverns will be added, which the company and Western Potash believe will bring the project to initial production stage.
Western Potash’s mining team, which is developing a new mining plan, is actively working to optimize that plan, which will allow work on the new caverns to begin soon after financing is secured. Milestone Potash Phase 1’s anticipated initial production is 146,000 mt/y.
“It’s unfortunate that the project’s startup has been further delayed but we believe that this suspension is necessary, prudent, and in the best interests of the company and Western Potash Corp.,” said Western Potash CEO and President Bill Xue.
“We remain committed to completing this exciting project, which is nearing initial production stage,” Xue added. “We are optimistic that despite our current challenges, and those we have faced in the past that were met and overcome, our efforts here to secure business and financial partners, who will work together with the company to complete the project, will be successful.”