Name of the Project
Fort Cady borate and lithium project.

Location
Southern California, US.

Project Owner/s
American Pacific Borates (ABR).

Project Description
Fort Cady is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.

An enhanced definitive feasibility has improved on the starter project, announced in January 2019, by incorporating further engineering work, as well as value engineering that has resulted in a substantial increase in the proposed sulphate of potash (SoP) production. SoP production(in full production) has increased by 233% to 363 000 t/y from 109 000 t/y.

Boric acid production remains unchanged at 408 000 t/y in full production, but importantly, Phase 1A production has increased by 50% from 5 400 t/y to 8 200 t/y.

The starter project has been achieved by splitting Phase 1 into Phase 1A and Phase 1B.

Phase 1A (starter project) will target the production of 40 kstpa of SoP and 9 kstpa of boric acid.

Phase 1B will then increase boric acid production to 90 kstpa and SoP production to 80 kstpa.

Based on the three-phase approach, the project has a mine life of about 21 years.

Potential Job Creation
At full production the project is expected to employ about 250 people.

Net Present Value/Internal Rate of Return
The enhanced DFS estimated a net present value, at an 8% discount rate, of $1.97-billion, compared with $1.43-billion in the DFS modified in January 2019 .

The enhanced DFS estimates an internal rate of return of 39.4%, compared with 40.5% in the modified DFS.

Capital Expenditure
The increased production will require a greater capital spend, with capital spend forecast at $737.9-million for the enlarged project, compared with the original cost of $526.2-million of the DFS modified January 2019.

Phase 1A will cost $50.3-million. Phase 1B is expected to require a capital investment of $155.97-million. Phase 2 is estimated at $268.3-million and Phase 3 is estimated at $263.2-million.

Planned Start/End Date
American Pacific Borate is targeting initial production in the second half of 2021.

Latest Developments
The US Environmental Protection Agency (EPA) has awarded the Fort Cady borate mine an underground injection control permit, ABR has announced.

With the award of the permit, the company now has all substantive operational permits for production of borates and SoP at the project.

“We are now less than 12 months from production of speciality fertilisers and micronutrients to be targeted initially at the high-priced Californian fertiliser market, right on our doorstep. This is another key step in our intention to become a globally significant producer of specialty fertilisers,” ABR CEO and MD Michael Schlumpberger has said.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
ABR, tel +61 8 6141 3145.