Circum New DFS Aug 201810 Nov 2019 12:03
CIRCUM MINERALS COMPLETES A NEW DFS – AUG 2018
Following the completion of a new Definitive Feasibility Study (DFS) for its Danakil Project in
Ethiopia, Circum Minerals Ltd. (“Circum”) continues to review strategic alternatives for the
project, focusing on the potential introduction of a third-party strategic investor to partner with
Circum in developing a potash mine in Ethiopia.
Circum has the mining rights to an extensive mineral deposit in north-eastern Ethiopia, which
it will develop into a world class mine, producing both SOP and MOP potash products which
are used for making fertilizer. Circum has re-conceptualised the mine development plan with
the objective of significantly reducing the initial upfront capital investment, resulting in a buildup to full capacity in four phases.
“We have reduced the initial capital investment required from US$2.3 billion to approximately
US$1.1 billion, which makes the project far easier to finance in the current market,” said Brad
Mills, CEO of Circum. “Importantly, once the first phase has been developed, the rest of the
phases are essentially self-funding.”
Circum recently completed a new DFS on the first phase of the modularized process, which
will produce 750 mtpa SOP. According to the DFS, prepared by independent consultants
Senet (Pty) Limited of South Africa, production can start as early as 2021 if mine
development begins in 2019. Circum will use low-cost, low-risk solution mining combined
with environmentally friendly solar evaporation to produce the raw salts, which will then be
refined at site to minimize transport costs. The Project’s substantial resources will allow for
multiple decades of expanding production.
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