Atlas Salt has expanded its strategic collaboration with Sandvik Mining concerning the Great Atlantic Salt Project near St. George's, Newfoundland and Labrador, Canada, with Sandvik's contribution valued at approximately $132m (Skr179.83m).
This marks a significant increase from the initial $73m outlined in the original memorandum of understanding (MoU) from September 2024.
The enhanced agreement broadens the scope to meet the full construction and ramp-up requirements as detailed in the updated feasibility study (UFS).
Sandvik will deliver underground mobile mining equipment, technology and related services.
The agreement also involves vendor-backed financing for the Sandvik capital equipment needed during the project's construction phase and ramp-up to a production capacity of four million tonnes per year (mtpa).
Atlas Salt president and CEO Nolan Peterson said: “The UFS reflects the scale and longevity of the Great Atlantic Salt Project, and our relationship with Sandvik has evolved accordingly.
“What began as an equipment supply arrangement has developed into a long-term strategic partnership aligned with construction, ramp-up and decades of expected operations. This partnership supports execution certainty, operational readiness and the disciplined development of the project.”
The expanded budget covers additional fleet units, automation, digital systems, electrification, other equipment aligned with UFS timelines post-construction, and underground mining equipment and services needed for construction and early operations.
Additionally, Sandvik has proposed a non-binding financing arrangement to facilitate acquisition costs for certain capital equipment and advanced technology systems detailed in the UFS, pending customary due diligence and finalisation of definitive agreements.
Sandvik remains a key partner, aligning its integrated project delivery services with Atlas Salt's execution strategy by coordinating mine design and equipment selection to meet safety, productivity and sustainability goals.
The UFS outlines the use of a mainly electric and battery-powered underground fleet, enhanced by automation and digital systems, as a fundamental part of the project's operational strategy.
Sandvik's technology suite, which includes AutoMine, digital fleet management tools and battery solutions, is expected to help meet these goals by decreasing operational risks and ensuring long-term cost stability.
Prior to this, Sandvik agreed to acquire ThoroughTec Simulation, a South African company specialising in equipment simulators and simulation-based training for the mining industry.
