Israel Chemicals Ltd. (ICL) is looking into the possibility to participate in the Namfos Project in Namibia, which aims to produce phosphoric acid from an offshore mineral resource. Royal HaskoningDHV (RHDHV) was assigned by ICL to carry out Due Diligence services, covering the full project chain (i.e. mineral resources and reserves, deep sea mining, port facility, onshore processing plant, environmental & social impact and financial modelling).
The offshore mineral resource is located in water between 200m and 300m deep, at a distance of almost 100km off the Namibian coast in a remote location. Besides the technical and logistical challenges of mining this resource, the project included challenges related to the onshore beneficiation process and the social and environmental impact.
A multidisciplinary team of RHDHV experts reviewed the proposed methods of mining the resource and producing the phosphoric acid, which included new technology. Key issues and their financial implications were identified and recommendations were made to mitigate some of the identified risks. The existing financial model was reviewed and an updated version of the model was developed in which various scenarios, as identified together with ICL, were compared.
Conclusions of the Due Diligence were presented to ICL management, who are considering next steps to participate in the Namfos project.