Lake Wells sulfate of potash project (LSOP)
- Offtake agreements totalling 70 000 t executed with Redox Pty Ltd and, post quarter end, Migao Group.
- Environmental Review Document (ERD) for the LSOP development submitted to the Environmental Protection Authority (EPA).
- FEED programmes underway, power and logistics costs and bore-field design the focus of optimisation work through the quarter.
- Northern Australia Infrastructure Facility advises that the LSOP has been approved to proceed to due diligence.
2Q20 and 3Q20 planned activities
- Finalise binding offtake agreements programme focussing on the Asian (ex China), European and North American markets.
- Progress/finalise EPA and other development approvals & permitting, including Minor and Preliminary Works Approval (EPA).
- Complete FEED cost optimisation programmes.
- Advance negotiations around project finance equity & debt facilities.
Managing Director and CEO, Matt Shackleton, commented: “Despite unprecedented global turmoil as a result of the Covid-19 pandemic, to date, we have not been significantly impacted.
“Our work programme for much of the first half of 2020 was already focused on non-fieldwork activities including offtake negotiations, FEED progression, approvals and financing. These activities have continued relatively unimpeded through this reporting period.
“This was evidenced clearly though the quarter with the execution of the first binding offtake agreement with Redox Group for 20 000 tpy of SOP from Lake Wells over a ten year term.
“Subsequent to the end of the quarter, we signed our second offtake agreement with Migao Group for 50 000 tpy of SOP into China and the Northern Australia Infrastructure Facility commenced due diligence on the LSOP.
“We look forward to another busy quarter finalising the offtake programme, obtaining permitting and approvals and significantly advancing project financing.”
Read the article online at: https://www.worldfertilizer.com/potash/30042020/australian-potash-releases-1q20-overview/