Atlas Salt (TSX-V:SALT) has partnered with Canada‘s largest railway operator, CN, to explore distribution solutions for de-icing salt from its Great Atlantic Salt Project in Newfoundland and Labrador.
Great Atlantic is described by Atlas as the only feasibility-stage salt project in North America. The proposed underground mine is expected to produce 4 million tonnes per annum over a 24-year mine life.
The project is located approximately 3km from the Trans-Canada Highway and adjacent to deepwater port facilities, providing access to tidewater shipping routes serving Eastern Canada, the Northeastern United States, and Western Europe.
Under a memorandum of understanding (MoU), Atlas and CN will explore multimodal rail solutions for Great Atlantic, including the potential for integrated rail logistics to reduce transportation costs, expand the project’s addressable market, and improve its economics.
According to the project’s 2025 Feasibility Study, Great Atlantic has a post-tax net present value of approximately C$920 million ($938.5 million) — at an 8% discount rate — and an internal rate of return of 21.3%. Initial capital costs are estimated at C$589 million.
Atlas says the MoU establishes a framework for the companies to jointly evaluate the use of CN’s bulk freight rail network and related logistics services to complement the project’s marine-focused distribution model.
Under the existing model, salt would be shipped by vessel from the Port of Turf Point to discharge ports along the eastern seaboard.
“Logistics is the single largest driver of delivered cost in the de-icing salt business, and we are systematically engineering every leg of our supply chain to maximise our competitive advantages,” CEO Nolan Peterson says.
“Collaborating with a partner of CN’s calibre to explore building out the rail component of our strategy is an important step, and it reflects the disciplined, cost, and value-focused approach we are taking across the project.”
“We look forward to exploring with Atlas Salt how our network can support the movement of its product to markets across Eastern Canada and beyond,” adds CN’s Vice-President of Petroleum and Chemicals Buck Rogers.
Atlas Salt is developing North America’s next salt mine and is committed to responsible and sustainable mining practices.
Write to Jackson Chen at Mining.com.au
Image: CN
