LCO updates engineering study for Lac à Paul phosphate mining project

Logo courtesy Arianne Phosphate.

Montreal-based LCO Construction & Management Consultants has provided an updated engineering study to development-stage mining company Arianne Phosphate for the projected capital expenditure (capex) to build its Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region.

The study was undertaken from late 2022 to early 2023 and estimates the project’s capex to be approximately US$1.55 billion. This estimate includes required infrastructure upgrades, such as a hydroelectric transmission line from dam to site and a ship-loading facility on the north shore of the Saguenay River.

“This report should go a long way toward dispelling the view that our capex has appreciated to the point of significantly diminishing our project,” says Arianne’s president, Brian Ostroff. “Although our capex is higher since our last report, so too is the price of phosphate and the benefits of the exchange rate.”

Arianne anticipates the mine will produce 3 million tonnes a year of high-purity phosphate concentrate, which sells today for more than $300 per tonne versus $213 per tonne in its previous study. As well, the current exchange rate is more than $1.35 versus $1.05 in the last study.

“Uncertainty is never a good thing,” says Arianne’s COO, Raphael Gaudreault, eng. “Being able to provide current numbers is important as the company discusses financing and development options with interested parties.”