GSFC, KRN's Canada project gets environment clearance

GSFC picked up 19.98% stake in Canadian potash mining company KRN for Rs 250 cr in Jan

State-owned Gujarat State Fertilizers and Chemicals Limited's (GSFC) Canadian project for potash mining with Karnalyte Resources Inc. (KRN), Canada, has got environmental clearance from the local government there.

 

KRN on Monday announced that the Saskatchewan Ministry of Environment (MOE) had approved the Environmental Impact Statement (EIS) for its Wynyard Carnallite Project, where GSFC was a partner.

"EIS approval is essential to the advancement of the Wynyard Carnallite Project, and was a condition of the $45 million strategic investment by GSFC," said Robin Phinney, President and CEO of Karnalyte. "EIS approval is a significant milestone for Karnalyte. We are now in a stronger position as we actively pursue additional funding opportunities to enable the start of Phase I of the Project's construction in the second quarter of this year."

In January this year GSFC had picked up 19.98% stake in the Canadian potash mining company KRN for Rs 250 crore (C$45 million). As part of the deal, the fertilizer major will get 350,000 tonnes per year (TPY) initially and the supply would increase to 600,000 TPY later on. GSFC will get potash from Karnalyte’s Wynyard Carnallite project in Canada for a period of 20 years from the commencement of commercial production.

KRN had submitted a revised EIS to the Saskatchewan MOE in September 2012 in accordance with the Environmental Assessment Act. After technical and public review, the MOE is satisfied that any adverse environmental effects can be eliminated or minimized.

The company (KRN) now plans to focus on obtaining permits required to initiate construction while continuing detailed engineering activities and finalising site preparation. It intends to advance the development of the Project concurrently with securing funding, a statement issued by KRN said.

KRN is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products.  Karnalyte intends to develop and extract a carnallite-sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impact.