Kalium Lakes Limited provides an end of year update on progress at the Beyondie Sulphate Of Potash project, as well as progress on funding and procurement activities.
Following the release of the results of the Bankable Feasibility Study (BFS) and upgraded 5.1Mt SOP Reserve on 18 September 2018 (click here for details) the Company has progressed a number of activities including:
Early Works and FEED
- Early Works have been underway since Q3 CY2018 with the major focus being the upgrade of the access road and communications towers to enable a smooth transition into construction. KLL has also purchased 60 ensuited accommodation rooms, a kitchen that can support in excess of 120 people, administration facilities, gymnasium, laundries and wet mess facilities. These are scheduled to be installed on site in the new year.
- Front End Engineering and Design (FEED) has been substantially advanced with works focused on plant optimisation, finalising equipment selection, process plant recovery improvements and debottlenecking of constraints across the process flowsheet. KLL continues to utilise K-UTEC as the principal process engineer and is working with it to finalise process plant guarantees.
Offtake and Other Major Agreements
- KLL and K+S are nearing finalisation of the Binding Offtake Agreement after K+S recently confirmed that it had satisfactorily completed its technical due diligence (DD) review of the Beyondie Project. The DD review, undertaken over five months, involved a number of site visits, technical reviews with K-UTEC, DRA Global, Advisian and others in Germany,Singapore and Australia. The assessment also included a detailed review of the BFS, with emphasis on the geology, brine analysis,processing, quality and cost components of the Project.
- Major Capital and Operational Contracts are well advanced, including supply of specialised purification plant equipment, EPC/M construction contracts, liner supply and install, gas supply, power station supply and install, pond earthworks and non-process infrastructure.
- The German Government Export Credit Agency (ECA) finance application continues to be progressed, having received a positive preliminary assessment decision by the German Government Inter-Ministerial Committee (see ASX Announcement 23 July 2018).
- KLL received written confirmation that the Board of Northern Australia Infrastructure Facility (NAIF) had considered a Strategic Assessment Paper for the Beyondie Project and has consented to the NAIF Executive continuing its investigation of the Project (see ASX Announcement 13 September 2018). KLL submitted a formal Investment Proposal to NAIF on 11 December 2018.
- Kalium is continuing to assist NAIF with its required due diligence investigations regarding participation in the debt facilities to fund the project capital expenditure necessary to develop the Beyondie Project. As part of the NAIF requirements, Kalium has an approved Australian Industry Participation Plan and has recently invited Expressions of Interest (EOI) to construct various gas pipeline packages (Website Link: EOI Packages)
- Project financing is on track, with terms sheets under discussion with a number of local and international financial institutions. Technical due diligence of the Beyondie BFS is complete with no major issues identified. Other areas of due diligence (market analysis, legal, tax, accounting, insurance) are also progressing well.
Read the article online at: https://www.worldfertilizer.com/product-news/12122018/kalum-lakes-provides-update-on-beyondie-sop-project/