Solv-Ex Corp. Receives Approval for Second Canadian Oil Sands Project

Strategic Insights -

Solv-Ex Corp. has been granted formal approval to proceed with construction and operation of a plant to process oil sands tailings in northern Alberta for production of minerals and metals. This marks the company's second Canadian oil sands project permit in less than a week, following a co-production plant approval from the Alberta Energy and Utilities Board on December 12. The latest permitted plant is designed to extract a variety of mineral products, including alumina in several different forms, from waste tailings in the Athabasca region.

Key Takeaways:

  • Solv-Ex Corp. has received approval for a second Canadian oil sands project, a plant to process oil sands tailings in northern Alberta, in addition to the previously approved co-production plant.
  • The new plant is designed to demonstrate the economic feasibility of processing waste tailings to extract mineral products, including alumina in several different forms.
  • Estimated capital costs for the project are in the range of $35 million, depending on the initial slate of products selected.
  • The facility is expected to generate final residues that will be environmentally suitable for use as backfill in mined-out areas of the open pits.
  • The permit also allows Solv-Ex Corp. to proceed with title transfer of land for the plant site.
  • Target date for commencement of oil production from the Bitumount Lease is late 1996 or early 1997.
  • Financing plans for the tailings plant are at an advanced stage and are expected to be closely tied to marketing of the initial slate of products.
  • Solv-Ex Corp. chairman and CEO John S. Rendall believes that the new approval completes all major permit requirements for both projects.

Statistics:

  • Estimated capital costs for the project: $35 million
  • Target date for commencement of oil production: late 1996 or early 1997

Sources:

  • Solv-Ex Corporation
  • BUSINESS WIRE, Dec. 18, 1995
  • Solv-Ex Corp. chairman and CEO John S. Rendall
  • Alberta Environmental Protection and Enhancement Act
  • Alberta Energy and Utilities Board
  • NASDAQ-SOLV

Note: The original text does not include specific sources for some of the statistics and dates. As a result, the sources listed are based on the text provided.