Saskatchewan Aluminum Deposit Could Revolutionize Supply Chain: Report
An aluminum deposit located in east-central Saskatchewan may significantly transform North America’s supply chains. The Canadian Energy Metals Corp. (CEM) announced this during the release of its Preliminary Economic Assessment (PEA) regarding the Thor Project, a deposit with potential global importance.
Saskatchewan Aluminum Deposit and Its Potential
Christopher Hopkins, CEM’s president and CEO, highlighted the significance of the Thor Project, stating, “This PEA confirms that the Thor Project is a possible game changer for North America’s aluminum supply chain.” He emphasized the critical role aluminum plays in various industries, including product transportation, energy transmission, and storage.
Resource Estimates and Economic Insights
The PEA outlines a substantial mineral resource estimate. Key figures include:
- Measured and indicated resource: 49.5 billion tonnes
- Alumina content: 6.8 billion tonnes
- Inferred resource: 86.6 billion tonnes
CEM’s financial model projects a surface mining and processing operation with:
- Average throughput: 16.5 million tonnes of ore feed per year
- Annual alumina production: 1.8 million tonnes
- Project lifespan: 25 years
Financial assumptions include initial capital expenses of US$6.3 billion and operating costs of US$1.6 billion. The model anticipates an internal rate of return (IRR) of 72% after tax, along with a net present value of cash flows amounting to US$72.3 billion, discounted at 10% after tax.
Economic Impact on Saskatchewan
The Thor Project holds the potential to establish a new industry in Saskatchewan and North America, according to CEM. The development could lead to high-paying jobs, increased tax revenues, and regional economic growth for decades.
Saskatchewan Premier Scott Moe remarked on the province’s emerging role in aluminum production. He noted, “With this resource find of such quantity and quality, our province becomes even more attractive on a global scale.”
There is optimism about expanding mineral resources in Saskatchewan, reinforcing the province’s position as a key player in the global supply chain for aluminum and alumina.
