How Sandvik & Atlas Salt Deal Will Make US Roads Safer

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 development, which builds upon a non-binding memorandum of understanding established in September 2024, means a significant increase in the amount of salt that will be mined and then sent to the US to de-ice roads.

The new deal is designed to meet the full construction and operational requirements of the project. Specifically, the agreement now targets a steady-state production capacity of 4 million tonnes per year.

This represents a substantial increase from the 2.5 million tonnes originally envisaged in the 2023 feasibility study, marking a major production shift.

Integrated project delivery and strategy

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 commercial value of the equipment and services provided is now estimated at US$132m, a rise of US$59m from previous estimates. This figure covers the supply of underground mobile mining equipment and digital systems required for the multi-year ramp-up phase.

The agreement also includes vendor-supported financing arrangements to help Atlas Salt with the capital requirements necessary for the project’s construction and eventual steady-state operations.

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.”

Swedish engineering and global operations

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 to 41,000 employees and operations in over 150 countries. The company organises its work into three primary units, including mining and rock solutions, which pioneered battery-electric vehicles and autonomous systems.

It also operates manufacturing and machining solutions alongside rock processing solutions.

Electrification and reducing operational risk

A central component of the updated feasibility study is the deployment of a predominantly electric and battery-electric underground fleet.

This strategy is intended to reduce diesel emissions and underground heat load, leading to lower greenhouse gas emissions and improved working conditions for staff.

Sandvik’s technology platform, which includes the AutoMine automation system and digital fleet management tools, will be used to improve long-term cost certainty. By integrating these battery solutions, the project aims to reduce energy intensity.

The equipment list includes high-capacity continuous miners, battery-electric haul trucks, and loaders designed to operate efficiently within the unique geological conditions of the Newfoundland site.

Strategic partnership and long-term vision

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. This partnership supports execution certainty, operational readiness and the disciplined development of the project.”

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."