Canadians raise expectations: Boron mine near Raska could be worth USD 639 million, despite three-year shorter lifespan for Piskanja

The Canadian company Boron One Holdings has estimated the net present value of the Piskanja boron mine project near Raska at USD 638.8 million, using an 8% discount rate, whereas at a 10% discount rate, the value stands at USD 558.8 million, approximately 6.5% higher than the previous estimate from 2022.

At the same time, the mine's estimated operational lifespan has been reduced from 16 to 13 years, while the recovery of the initial USD 79.9 million investment is expected within less than 12 months of the commencement of commercial production.

The after-tax internal rate of return has increased from 78.7% in the previous estimate to 89% in the new study.

Project revenues and costs

According to the new assessment, total gross revenue over the mine's operational life could reach approximately USD 1.97 billion, with an estimated average annual gross revenue of USD 140.4 million. In the previous study, total gross revenue was estimated at USD 2.02 billion, with an average annual figure of USD 126 million.


Initial capital expenditures remain at USD 79.9 million, while additional capital expenditures during the operational phase are estimated at USD 38.1 million. In the previous estimate, these amounted to USD 50.8 million.

Planned annual production

The updated study projects an average annual production of 157,600 tons of colemanite, 83,800 tonnes of ulexite, and 25,000 tonnes of boric acid.

The company states that, following the previous economic assessment in 2022, it conducted further metallurgical and process testing, refined the 3D mineral resource model by borate type, developed mine plans, and carried out geotechnical investigations. The preparation of the new assessment also incorporated analyses of boron prices and market trends, as well as an environmental impact assessment.

– It is justified to continue activities toward the further development of the project – Boron One states in the assessment, adding that a future work program will be considered to define the necessary steps toward preparing a feasibility study and the potential construction of an underground mine.

Updated mineral resources

According to the assessment dated October 12 of this year, the project holds 7.14 million tonnes of measured and indicated mineral resources, with an average grade of 32.4% B2O3.

The project is located in the Jarandol Basin in southern Serbia, approximately 160 kilometers south of Belgrade by road. The exploration license is held by Balkan Gold d.o.o., a company wholly owned by Boron One Holdings.

Boron has a wide range of applications in the production of glass, ceramics, and fertilizers, as well as in other industrial processes. Due to its properties, it is also significant for certain technologies related to the energy transition.

Branislava Petrovic

Balkan gold doo Beograd

Boron One

Balkan gold doo

Piskanja

boron

boron mine

borate explorations

colemanite

ulexite

boric acid

preliminary assessment