Western Potash Corp. of Vancouver has entered into a binding offtake agreement with Archer Daniels Midland Co. for 100% of the potash production – 146,000 tonnes per year – from the first phase of the Milestone project 30 km southeast of Regina, Saskatchewan.
Western says the agreement is binding but declined to offer a price for the potash. Instead it said “a structure to incentivize the best final sale price for both parties” will be created. The fertilizer will be sold FOB mine site and trucked 13 km to the Port Lajord Terminal.
Production drilling began in July 2014 at Milestone. This is an in situ project that will leave no salt tailings on the surface. Using this method also significantly reduces water consumption.
Construction of surface facilities has started, and should be complete in mid-2020. Western expects potash production to begin by the end of next year.
(This article first appeared in the Canadian Mining Journal)