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Kalium Lakes awards SOP product haulage and port contract

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World Fertilizer,

Kalium Lakes Ltd has awarded the SOP product haulage and port contract for its Beyondie Sulphate of Potash Project (BSOPP) in Western Australia to Toll Mining Services. The contract includes the full logistics chain of product transport from mine site to shipping, including:

  • Collection of various SOP products at the BSOPP site.
  • Product haulage via existing road trains returning from Newman to Perth.
  • Receipt, storage & inventory control of SOP products at a Toll provided depot in Perth.
  • Loading in containers, despatch, delivery and shipping documentation for SOP products from the depot to Fremantle or Kwinana Ports, ready for shipping on a Free Carrier (FCA) basis.

The contract is subject to a Final Investment Decision (FID) and subsequent notice from Kalium Lakes that it is ready to commence haulage operations.

Following a competitive tender process during the Bankable Feasibility Study for the BSOPP, Toll Mining Services (MV) Pty Ltd (Toll) was confirmed as the most competitive and suitable provider of these services. Kalium Lakes and Toll have subsequently worked together and negotiated a contract that meets the requirements for debt and equity finance purposes.

Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, commented: “We have worked closely with Toll to develop a strategic, fit for purpose and mutually economic product delivery logistics solution. “Utilising Toll’s existing fleet to backload our product from Beyondie to Perth, without adding more trucks on the road, not only provides for an economical solution, but also demonstrates Kalium Lakes’ strategic location which has provided cost saving synergies for both companies.

“The costing to undertake these tasks are within the budget outlined in the Bankable Feasibility Study released late last year. We are very pleased to have concluded the contract with Toll and are looking forward to establishing a close working relationship, with first product scheduled to be transported in 2020,” van Niekerk said.

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