MBAC Fertilizer has revealed results of a feasibility study for its Santana phosphate project located in the south-east of Pará State, Brazil.
The project currently holds mineral reserves of 45.5 million tonnes, grading on average 12.9% phosphorous pentoxide at a 3% cutoff.
The project, which is expected to cost $426.7m, is anticipated to produce about 500,000t of granulated single super phosphate (SSP) per year, which the study says will be sold at $345 per tonne in 2016.
According to the study, the project has an estimated mine life of 32 years with an after-tax internal rate of return of 19.9% and a capital payback period of five years.
MBAC, through one of its subsidiaries, holds eight exploration claims with an additional three exploration permits under application, totaling 97,949ha.
The company said it will retain an engineering, procurement and construction management contractor for the project to provide further independent oversight, which is expected to assist in mitigating the risk of cost overruns.
MBAC will also undertake additional detailed engineering studies in order to mitigate risks of cost escalation before any final construction decision is made.
MBAC owns and operates the Itafós Arraias SSP operations, which feature a fertilizer production facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil.
The Itafós operations are expected to have production capacity of about 500,000t of SSP per annum.