The Sandvik Construction Deal That Defrosts US Highways

Atlas Salt has announced a significant expansion of its strategic relationship with Sandvik Mining as part of an updated feasibility study for the Great Atlantic salt project in Newfoundland and Labrador.

The expansion follows an updated feasibility study which outlines the construction and ramp-up requirements for the Canadian project. The scope of the agreement has increased to an estimated commercial value of US$132m, up from the US$73m originally contemplated in 2024.

This increase reflects the higher production targets now set for the mine, which aim for 4 million tonnes per year. Sandvik will provide mobile mining equipment, technology and associated construction services.

Vendor financing and capital equipment

To enable the acquisition of essential machinery, Sandvik has expressed a non-binding financing arrangement.

This is intended to support Atlas Salt in securing the capital equipment and advanced mining systems outlined in the latest study. The financing remains subject to due diligence and internal approvals but is viewed as a key step in ensuring the project reaches its production goals.

The equipment quantities and deployment schedules are consistent with the development plan, which includes underground mobile units for initial mine construction and the subsequent ramp-up phases.

The expanded partnership designates Sandvik as an integrated project delivery partner. In this role, the Swedish engineering firm will align mine design and equipment selection with the project's safety and productivity goals.

The Great Atlantic Salt Project

The Great Atlantic Salt Project is ideally located to significantly penetrate Eastern North America’s road salt market.

Higher overseas shipping costs, supply chain issues and ageing mines have combined to threaten the long-term security of domestic supply of high-grade rock salt – crucial to keep roads safe during winter.

Approximately 25 million tonnes of de-icing salt (150 pounds for every American) is scattered on US roads annually with 30% to 40% of that filled by imports from Chile and North Africa.

Potential low cost Great Atlantic production could alleviate the reliance on overseas imports, while also providing important supply to markets in eastern Canada.

“Salt plays a big role in our everyday lives,” explains Atlas President Rowland Howe. “Great Atlantic has the potential to become the biggest and best underground salt mine in the world. The market is there and the project would be highly scalable to meet demand for generations, making this a very valuable asset.”

Engineering solutions for mining industries

Sandvik AB is a Swedish multinational engineering giant that provides high-tech solutions for the manufacturing, mining and infrastructure sectors.

Founded in 1862 by Göran Fredrik Göransson, it has grown into a global leader with roughly 41,000 employees and operations in over 150 countries.

Its primary business areas include mining and rock solutions, manufacturing and machining solutions, and rock processing solutions. The firm is a pioneer in battery-electric vehicles and autonomous mining systems, recently launching a fully electric mobile crushing plant in Africa.

Battery electric fleets and automation

The project’s construction strategy relies heavily on a battery-electric and electric underground fleet. By using Sandvik’s technology platform, including AutoMine and digital fleet management tools, the project aims to improve working conditions and reduce ventilation demand.

This approach is expected to lower greenhouse gas emissions and energy intensity over the mine’s life. The equipment list includes MB670-1 high-capacity continuous miners, MT521 roadheaders, and TH550B battery-electric haul trucks.

These units are designed to work alongside Toro LH518iB loaders and DS412iE battery-powered bolters.

Long-term project execution certainty

Nolan Peterson, President and CEO of Atlas Salt, said: “The UFS reflects the scale and longevity of the Great Atlantic salt project and our relationship with Sandvik has evolved accordingly.

"What began as an equipment supply arrangement has developed into a long-term strategic partnership aligned with construction, ramp-up and decades of expected operations.

Peter Corcoran, Vice President of Sandvik Mining Canada, said: “Sandvik is pleased to continue working with Atlas Salt as the Great Atlantic salt project advances. The UFS confirms a long-term vision that aligns well with our portfolio of electrified equipment, automation and lifecycle services, and our strategic initiatives in the Canadian market. We look forward to continuing to support the project through its development and operation."

The two companies will continue to collaborate on mine design and maintenance planning to ensure the project meets its sustainability objectives while increasing production from 2.5 to 4 million tonnes annually.