Western Potash Corp. (TSE:WPX) announced Tuesday that the City of Regina has approved an agreement that will see a large portion of the city’s treated waste water routed to the company’s Milestone potash mine site.
The company’s shares jumped almost five per cent on the news, trading at $1.14 as at 11:00 am EDT.
up and running, Western Potash said the Milestone project will draw
between 40 per cent and 70 per cent of the City of Regina‘s wastewater.
company said the agreement, if paid out annually, is worth more than
$200 million to the city over a 45 year term and will see up to 60,000
cubic metres of treated waste water diverted daily from the Regina
wastewater treatment plant to the Milestone potash mine site located
approximately 30 kilometres Southeast of Regina and 80 kilometres
Southeast of Mosaic Co.’s (NYSE:MOS) Belle Plaine mining lease.
Potash is delighted to have reached this agreement with the City of
Regina and is pleased to be working together to sustainably innovate the
potash solution mining process," said Western Potash's president and
CEO Patricio Varas.
"There are certainly no other potash solution mines in the world utilizing treated waste water."
junior miner said that the City of Regina will operate the pump house
and pipeline and will be responsible for obtaining all necessary
environmental approvals, while Western Potash will fund the capital
costs associated with the construction of the pump house and pipeline.
"This innovation is a win-win for everyone," said Regina’s acting deputy mayor Louis Browne.
only is the City of Regina now being compensated for treating a waste
product, but we are facilitating economic growth in one of
Saskatchewan’s key sectors: Potash development.
downstream negative effects such as increased algae will also be
alleviated, making this is a prime example how creative thinking and
partnerships can yield a more promising future for everyone."
Potash is a mineral exploration company engaged in the evaluation,
exploration and development of potash mineral properties in Western
Under NI 43-101 guidelines, the Milestone project holds
66.6 million tonnes of measured recoverable resource, 186.9 million
tonnes of indicated recoverable resource and 708.2 million tonnes of
inferred recoverable resource.
Western Potash said the Milestone
project contains potash resources of sufficient size and grade to
support solution mining for more than 40 years at a production rate of
2.8 million tonnes per year.