Western Potash Corp. speeds up its Phase 1 project construction

After two years’ suspension of the Milestone Phase 1 Project construction, Western Potash Corp. restarted the project in June this year, with almost all the original main contractors and service providers returning, following the completion of Western’s payment of all outstanding dues. As of November 2022, the project has been progressing rapidly. To satisfy requirements of the newly optimized mining plan, the original pump house has been modified, allowing for the restart of the existing caverns and to develop them to the desired size. A disposal well has also been drilled and completed and is now in operation. This will accelerate developing our existing caverns, ensuring we reach production in the shortest possible time.

Construction of the process plant is also progressing to plan. Main process plant buildings will be enclosed in the coming weeks so that installation of instrumentation and equipment can take place inside a heated environment, protecting the workers from the harsh winter weather. Over the past five months, we’ve maintained an average of 60 construction people on site in addition to the Western Potash team. Most of the equipment has been placed in drying, compaction, and product storage. The work is progressing well and should be complete before Christmas.

Hiring continues and all our key positions have been filled, with focus now on operators and maintenance personnel. With our location close to Regina, Western Potash provides attractive employment opportunities. Once Phase 1 is in full production, we will have more than 50 full-time employees.

We recently gathered the world’s leading experts on solution mining for a week-long workshop to perform another review of the cavern technology and the best path forward to ensure our

Western Potash Corp. process plant in construction.

success using horizontally drilled selective solution mining. Major specialized service providers such as directional drilling experts were present in the brainstorming session, to provide the mining experts with a clear understanding of how the mining plan can best be executed. This exercise was a huge success, providing confidence in the future of the project, and our team is now implementing the resulting recommendation.

Work planned for next period

We will complete installation of all equipment, erection of all structural steel, and installation of cladding by the end of December. Focus will then shift to completing installation of ductwork, electrical equipment, and instrumentation. Construction of the loadout facilities is expected to be complete by the end of Q1 2023, which will coincide with mechanical commissioning. From an operations perspective, our focus is on developing the existing caverns to full production size, followed by drilling, and developing an additional cavern. By Q2 2023, Phase 1 is expected to be achieving initial production, which will crown our success in being the first potash mine in Saskatchewan and Canada to successfully utilize selective horizontal potash extraction.

Western Potash aims high

It will have taken Western Potash 15 years to become a potash producer by mid-2023. The success of the project has resulted from the strong support from investors and key stakeholders at different stages, and from the innovative ideas of our world-class mining team. With the success of the project pending, management is aiming higher to achieve 300ktpa+ MOP production by the end of 2025. This was recently approved by the board of Western Resources Corp., which wholly owns Western Potash and the Milestone Project. Phase 2 will represent an expansion, utilizing the unique mining technology developed in Phase 1. It will also reduce the overall CAPEX of the Milestone Project by sharing existing Phase 1 infrastructure, which will make the project more economical and will pave the way for further expansion of the project in the future. s

The Milestone Process Plant buildings will be enclosed this winter.

CUSTOM MACHINE AND MECHANICAL SERVICES LTD.