Russia's Acron, through its Canadian subsidiary North Atlantic Potash, and UK-based Rio Tinto have formed a joint venture to develop the Albany potash project in Saskatchewan.
The Albany project contains an inferred resource of 1.4bn tonnes (t) at an average grade of 31pc KCl. Total recoverable potash is estimated at 329mn t KCl. Rio Tinto designated the development as a "Tier 1" discovery in its 2013 annual report because of the project's potential.
"The size, quality and temperature characteristics of our Albany project in particular position it as one of the best potash development opportunities in the world," North Atlantic Potash president Arie Zuckerman said.
The project is still in preliminary stages with the companies working to complete an environmental assessment and pre-feasibility study. The companies plan to use solution mining for the project, which costs less and takes less time to build than conventional potash mining.
The Albany project has more estimated reserves than K+S' Legacy solution mine currently under construction in the province. Legacy, which is expected to begin production by the end of 2017, has proven reserves of 160mn t KCl with a full capacity of 2.86mn t/yr KCl targeted by 2023.
Acron and Rio Tinto's JV company holds nine potash permits covering 586,000 acres in Saskatchewan.
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