Pilot Plant Testing

   10.06.2009

As announced on May 14, Sunkar Resources plc is working currently on the last unsolved technical uncertainty of the way of implementing of high grade fertilizer manufacturing facility. Pilot plant testing has commenced to prove the viability of production of phosphoric acid. 

Sunkar plans to produce phosphoric acid from 17% phosphate concentrate produced at its Chilisai phosphate deposit. In order to have ability to produce DAP and MAP, the most internationally marketed phosphate fertilizers, from phosphoric acid the content of impurities in phosphoric acid generated form said rock should not exceed certain level.

This level is characterised by the indicator called MER (minor element ratio). Term “MER” is calculated as ratio of sum of metal oxides equivalents (Fe2O3 + Al2O3 + MgO) to content of P2O5 equivalent in phosphoric acid. The phosphoric acid must have MER no more that 0.09 to be able to be converted into DAP and no more that 0.12 to produce MAP.

The presence of mentioned metals can also affect the ability of phosphoric acid, coming out of phosphoric acid reactor, to be concentrated to merchant grade (usually 54% of P2O5) without loss of fluidity and achieving certain purity levels. The merchant grade phosphoric acid is another marketable product, which has its own niche on the international fertilizers market.

Other issues under question are proposed technical parameters of phosphoric acid plant suitable for processing of phosphoric acid from Chilisai rock on industrial scale. These parameters can affect capital and operating costs of such phosphoric acid plant and therefore they shall be important input for feasibility study.
To prove the viability of production of phosphoric acid of desired quality Sunkar has hired three independent contractors to run phosphoric acid pilot plant tests:

• Jacobs Engineering, FL, USA
• KEMWorks, FL, USA
• Prayon Technologies SA, Belgium

Phosphoric acid Pilot Plant tests are to prove that phosphoric acid of quality can be economically produced from 17% P2O5 Chlisai phosphate rock. The tests shall also produce target Product List of the Project and process economics. Target Product List will allow Sunkar to start marketing its future output to potential buyers. Results of Pilot Phosphoric acid Plant tests are expected in the 3Q 2009.

The Company has elected to give testing job to three contractors in order to evaluate different approaches to phosphoric acid plant technology and in order to have second opinion on the matter.