Definitive Feasibility Study

Definitive Feasibility Study
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Definitive Feasibility Study

The Definitive Feasibility Study represents the culmination of 5 years continuous development of the Project by the Cominco team.

Project highlights include:

Project highlights

The main participants in the DFS were:

Cominco, who prepared sections on geological definition and the Mineral Resource Estimate (by CSA Global) marketing studies and price forecasts (by CRU Consulting), legal framework, permitting status and community relations;

SRK Consulting

SRK Consulting (UK) (SRK) provided the JORC compliant Ore Reserve Statement, mine design and schedules and the mine capital and operating cost estimates. SRK also completed reports on hydrology, hydrogeology and geotechnical investigations. These studies have facilitated the design and cost estimation of the water management systems and the tailings storage facility as well as the mine itself;

AUSENCO

Ausenco Engineering (Ausenco) were responsible for the overall management and coordination of the DFS, including the metallurgical testwork programme, and the design and costing of the beneficiation plant at Hinda and Pointe Indienne. Ausenco carried out product slurry testwork, facilitating the design and costing of the concentrate pipeline and completed the design and cost estimation of the export jetty, based on their evaluation of available bathymetric and geophysical data;

Mintek

Mintek conducted the metallurgical bench and piloting testwork;

Prayon

Prayon, in Belgium carried out acidulation testwork on the concentrate generated in the pilot campaigns to evaluate its amenability to the production of phosphoric acid and DAP; and

WSP

WSP (Genivar) managed the environmental baseline studies and the development of an independent ESIA for the exploitation phase of the Project.

The DFS demonstrates that the Hinda Project is technically and commercially robust and has the capacity to repay its US$601M development cost within 26 months of production generating an after-tax, ungeared 38% IRR and NPV10 of US$1.85 billion.

The Hinda deposit is one of the world’s largest and thickest undeveloped phosphate JORC Ore Reserves. It has a low overburden to ore ratio and can be open pit mined, by free-digging, with no requirement for ripping or blasting.

The project capital costs are inclusive of all necessary equipment, infrastructure and services required to extract the ore from the mine and to deliver product into a vessel at the port. The costs for mechanical equipment and bulk materials, such as concrete, structural steel and earthworks, have been obtained from quotations. Capital costs include allowances for contingency and Owners costs.

The economic analysis includes sustaining capital largely associated with the on going expansion of the mine, the associated pit dewatering and the replacement of mining equipment.

The operating costs are inclusive of labour, electrical power, natural gas, maintenance spares, reagents, consumables and administrative costs. Unit operating costs have been built up on the basis of firm quotations and in the case of labour, have been based on an evaluation of the rates and regulations prevailing in ROC.

The Phosrock pricing assumptions in the financial model are derived from CRU’s estimated long run marginal cost of production.