Energy & Mining International - Fall 2015 - 71


KARNALYTE

FALL 2015
CANADA

E
M
I

brought to the surface. Afterward, the potassium and
magnesium are recovered and processed. Thanks to its
process technology, "Our cost to process is very competitive," Phinney says.

A SECOND PRODUCT LINE
Phinney has worked in the industrial minerals industry,
especially potash, for most of his career. "Potash is a
very, very interesting product," he says, noting that he
believes demand for it will only increase as the global
population increases.
"We've got emerging markets, changing diets and the
fact that the soil can only go so long without the addition
of fertilizer," Phinney says. "If you have a large demand,
you'll eventually get some long-term price increases."
The magnesium product line also has strong potential
for Karnalyte. The company conducted a pre-feasibility
study for the production of Magnesium Chloride brine
and Magnesium Compounds. Both have the potential to
be profitable new lines. "It's like having a goldmine with a
copper credit that pays for the operating cost," he says.
Additionally, with some of the lowest capital expenditures in the industry, "We can build as capacity is required," Phinney says, noting that he sees a strong future
for the company. "We have a premium product and it's
going to go for premium pricing."
The company also plans to grow its staff. "We have
always run a very lean, cost-conscious-type of company," Brinkman says. "As soon as there's funding, that will
increase dramatically." EMI

+
Investigating New Markets
_____
Magnesium compounds, Karnalyte says, are used in many
applications, including raw materials for steel and cement
industry refractories, fire extinguishing chemicals, additives
and fillers for rubber and other polymers. "Karnalyte has
been actively investigating new and emerging markets for
its proposed magnesium compound products to increase
value and market stability of the end-products," it says.
"Market development into the use of BMC [Basic Magnesium Carbonate] instead of precipitated calcium carbonate in the pulp and paper industry and titanium dioxide
extenders in the paint and pigment industries has produced
positive results," it adds. "Karnalyte plans initial annual
production of 100,000 tonnes of magnesium chloride brine
and 100,000 tonnes of BMC."

emi-magazine.com 71


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Table of Contents for the Digital Edition of Energy & Mining International - Fall 2015

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