RE:And here is the second fertilizer project Santana I don't think they will sell the second mine (barring a buyout) as it is trucking distance to the current plants at Itafos. However when Itafos is ramped up to full capacity (also 500,000 tonnes per day) and generating $100 million a year in gross revenue they will easily secure financing to build a second operation. Brazil has a shortage of domestic fertilizer and fully supports Itafos and as witnessed is giving them back $26 million in tax credits.
Santana Phase I is expected to produce
500,000 tonnes of
SSPannually.
Santana currently has a mine life of
32 years and an NPV of
$396M USD
Once developed, Santana is expected to produce 500,000 tonnes per year of single super phosphate (SSP) from a phosphate concentrate grading 34% P2O5 for 32 years in the initial phase of the Projec. Santana’s high-grade deposit allows for the production of high-content phosphate fertilizers and animal nutrient products. Pilot plant tests have confirmed that recoveries on the ore flotation will be suitable to produce Triple Super Phosphate (TSP) and a di-calcium phosphate (DCP) animal supplement in Phase 2 of the Project.
Santana is located in the southeast of Pará State, Brazil. The target phosphate fertilizer markets for the Project are the northern and eastern regions of Mato Grosso and the southern region of Pará, two Brazilian states with significant agricultural output.
LOCATED NEAR BRAZIL'S AGRICULTURAL HEARTLAND
Mato Grosso is known as Brazil’s largest soybean producer and the largest consumer of fertilizer products. Pará is a large beef producer in Brazil, which provides a potential market for the animal supplement di-calcium phosphate
(“DCP”). SSP demand in Mato Grosso State alone is approximately 1.5 million tonnes per annum. This demand is expected to grow at least 20% by 2015, with an estimated demand of SSP in 2015/16 in the range of 1.8 and 1.9 million tonnes of SSP per year according to Agroconsult Consultoria and Marketing (
“Agroconsult”), an independent consultant.
In October 2013, MBAC released the results of its Feasibility Study on the Santana Project.
NI-43-101 Technical Report
| Ore Reserve |
Tonnes |
Grade: P2O5 (%) |
| Probable Mineral Reserves |
45.5 million |
12.86% |
| Ore Resource |
Tonnes |
Grade: P2O5 (%) |
| Indicated resources |
60.4 million |
12.04% |
| Inferred resources |
26.6 million |
5.56% |
| Highlights of Project Economics and Key Parameters |
| NPV @ 10% |
$396 million USD |
| Mine Life |
32 years |
| Average ROM Grade |
12.9% P2O5 |
| Production |
500,000 tonnes per year |
| Internal Rate of Return |
19.9% |
| CAPEX |
$427 million USD |
| OPEX |
$113 per tonne USD |
| Payback Period |
5.0 |
MBAC is currently carrying out additional work in the region in order to define new drilling targets.
Read more at https://www.stockhouse.com/companies/bullboard/t.mbc/mbac-fertilizer-corp#MZhgJQDvL70vpZP0.99