The NI 43-101 Preliminary Economic Assessment for the Cerrado Verde project was completed in October 2010. The independent engineering work was completed jointly by ECM .S.A - Projetos Industriais and SRK Global Mining Consulting, beginning in July, 2010. The PEA studied open pit mining and pyrometallurgy to create the ThermoPotash product. The results of the PEA are shown below on two production rates: 1.1 million tonnes per year and 2.2 million tonnes per year.
Production Rate
(Brazilian market share of Potash "K2O") |
1.1Mtpy
(2%) |
2.2Mtpy
(4%)
|
| NPV (10%) |
US$455.4m |
US$844.1m |
| NPV (12%) |
US$339.1m |
US$642.0m |
| IRR |
32.9% |
40.0% |
Operational Cost
|
US$41.80/t
|
US$36.36/t
|
CapEx
Contingency
Pre-construction
Total CapEx |
US$155.3m
US$23.3m
US$18.2m
US$196.8m |
US$218.4m
US$32.8m
US$18.2m
US$269.4m |
| Payback |
2.38 years |
1.87 years |
The full detailed report is disclosed on SEDAR or can be downloaded here.