This a company that has done the work(step) to bring a potash mine into production with the solution technology.

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2008) - MagIndustries Corp., (TSX VENTURE:MAA) ("MagIndustries"), is pleased to announce that MagMinerals Inc. ("MagMinerals"), an indirect wholly owned subsidiary of MagIndustries, has received the results of a final feasibility study (FS) for the development of the Kouilou Potash Mine near Pointe-Noire, Republic of Congo. MagMinerals intends to build, own, and operate a stand-alone 600,000 tonne per year (tpy) potash mine and plant, 16 kilometers east of the Atlantic port city of Pointe-Noire, West Africa's best deep-water port.

The FS was carried out in two phases. Phase 1, completed earlier by Genivar LLP, consisted of a preliminary investigation of the quality of the resources, development of the preliminary scope of the project and the initiation of the environmental and social impact assessment (ESIA) study. The results of Phase 1 were announced by MagIndustries on March 29, 2006. SNC-Lavalin International Inc. (SLII), who were contracted in July 2006, have now completed Phase 2 of the FS and presented the results to MagMinerals as a 19 volume final feasibility.

The capital cost of the project has been estimated at US$723 million excluding financing costs, for a 600,000 tpy operation producing granular K60 grade potash. Direct and indirect operating costs, with contingency, are estimated to be $83/tonne FOB Pointe-Noire. BNP Paribas, financial advisors to MagMinerals, completed the financial analysis. Based on a net realized potash price of approximately US$500/tonne the first phase of the project yields an IRR of 26% and an NPV of US$450 million (assuming a12% discount rate). The Government of Congo will retain a 10% free carried interest in the Kouilou Potash Mine.

BNP Paribas have approached a group of international lenders who have given a strong expression of interest to debt finance 70% of the project costs to bring the Kouilou Potash Project into production. MagMinerals intends to provide the required 30% equity and close project financing by Q3 2008 with construction to begin immediately thereafter. On the basis of the acceptance of the FS, MagMinerals has now been mandated to complete all required agreements and proceed with corporate and project financing.

The FS is based on the application of proven solution mining technology to exploit MagMinerals 100% owned carnallite deposits which underlie the majority of the 2265 square kilometer Makola license. Solution mining produces potash-rich brine which, under the proposed plan, will be treated in a crystallization plant to produce granular grade potash fertilizers for export. The potash plant will utilize commercially available technologies. One of the primary inputs for this process is natural gas which is available locally (currently flared from the area's significant oil production with no public or industrial consumers). This gas supply, to be contracted from the Government of ROC, will also supply an onsite 26MW gas-fired power plant which will be sufficient to meet all mine and plant requirements.

http://www.marketwire.com/mw/release...

ecce