Atlas Salt Inc says it has expanded its strategic relationship with Sandvik Mining in connection with an updated feasibility study (UFS) for its Great Atlantic salt project near St. George’s, Newfoundland and Labrador, Canada.
Building on the comprehensive non-binding Memorandum of Understanding (MOU) announced in September 2024, Atlas Salt and Sandvik have expanded the scope of the MOU to reflect the full construction and ramp-up requirements outlined in the UFS. The expanded scope contemplates Sandvik supplying underground mobile mining equipment, technology and associated services, with vendor-supported financing for Sandvik capital equipment required during project construction and the planned ramp-up to steady-state production of 4 Mt/y, up from the 2.5 Mt/y envisaged in the 2023 feasibility study.
Based on the mine plan, production profile and capital assumptions presented in the UFS, the anticipated commercial value of Sandvik-supplied equipment, technology and services during the construction and ramp-up phases of the project is estimated at approximately C$132 million ($97 million), representing an increase of C$59 million from the C$73 million contemplated under the original MOU.
The estimated C$132 million scope includes:
- Underground mobile mining equipment and associated services required for mine construction and initial operations;
- Additional fleet units, electrification, automation and digital systems deployed during the multi-year ramp-up to full production capacity; and
- Equipment quantities and deployment schedules consistent with the UFS development plan and ramp-up timelines post-construction.
In connection with the product and service offering, Sandvik has expressed a non-binding financing arrangement to support the acquisition of certain Sandvik capital equipment, advanced mining system and technology contemplated in the UFS. The terms of financing remain subject to customary due diligence, receipt of Sandvik’s required internal approvals, and negotiation and execution of the definitive agreements.
Sandvik continues its role as an Integrated Project Delivery (IPD) partner in supporting Atlas Salt’s UFS and execution strategy by aligning mine design, equipment selection, automation and maintenance planning with the project’s safety, productivity and sustainability objectives.
The UFS contemplates a predominantly electric and battery-electric underground fleet, supported by automation and digital systems, as a core element of the project’s operating strategy. Sandvik’s technology platform, including AutoMine®, digital fleet management tools and battery solutions, is expected to support these objectives while reducing operating risk and improving long-term cost certainty. Operating with Sandvik’s battery-electric and electric underground fleet, as contemplated in the UFS, is expected to reduce diesel emissions, underground heat load and ventilation demand, resulting in lower greenhouse gas emissions, improved working conditions and reduced energy intensity over the life of the project.
Nolan Peterson, President and CEO of Atlas Salt, said: “The UFS reflects the scale and longevity of the Great Atlantic salt project, and our relationship with Sandvik has evolved accordingly. What began as an equipment supply arrangement has developed into a long-term strategic partnership aligned with construction, ramp-up and decades of expected operations. This partnership supports execution certainty, operational readiness and the disciplined development of the project.”
Peter Corcoran, Vice President of Sandvik Mining Canada, added: “Sandvik is pleased to continue working with Atlas Salt as the Great Atlantic salt project advances. The UFS confirms a long-term vision that aligns well with our portfolio of electrified equipment, automation and lifecycle services, and our strategic initiatives in the Canadian market. We look forward to continuing to support the project through its development and operation.”
In the original MOU, Atlas Salt listed mining equipment such as MB670-1 high-capacity continuous miners, MT521 roadheaders, TH550B 50 t battery-electric haul trucks, Toro™ LH518iB 18 t battery-electric loaders and DS412iE battery-powered bolters.
Source: im-mining.com
