Atlas Salt, developer of the Great Atlantic Salt project near St. George’s, Newfoundland and Labrador, has expanded its hardware relationship with Sandvik as the project updates its feasibility study.
A new memorandum of understanding expands its initial pact from September 2024 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.
The producer has also outlined new vendor-supported financing for the Sandvik capital equipment that will be required during project construction and the planned ramp-up to the mine’s steady-state production of 4 million tonnes annually.
Nolan Peterson, president and CEO, said the updated feasibility study reflects the scale and longevity of the Great Atlantic Salt Project and its partnership.
“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,” he said.
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 $132 million, representing an increase of $59 million from the $73 million contemplated under the original MOU.
The estimated $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.
Sandvik will continue 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, will 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,” the producer said.