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Kalium Lakes releases statement on current and upcoming projects

Published by , Assistant Editor
World Fertilizer,

Kalium Lakes provides latest reports on 4Q18 projects and 1Q19 plans, including the status of its Beyondie Sulphate Of Potash Project.

Beyondie Sulphate Of Potash Project

Kalium Lakes Limited is an Australian exploration and development company, focused on developing the Beyondie Sulphate Of Potash Project in Western Australia with the aim of producing Sulphate of Potash (SOP), a high yield, premium fertiliser, for both domestic and international markets. There is currently no SOP production in Australia.

The Beyondie SOP Project, comprises 15 granted exploration licences, two mining leases, and several miscellaneous licences covering an area of approximately 2400 km2. This subsurface brine deposit will supply an evaporation and processing operation located 160 km south east of Newman.

Approaching a Final Investment Decision, the company completed a Bankable Feasibility Study in September 2018 for the project (the first BFS for any Australian SOP deposit), which confirmed the project is technically and financially robust, with first production anticipated in 2020.

The project aims to commence production at 82 ktpa of SOP, before ramping up to 164 ktpa of SOP for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life, and high margin producer.

New WA rental rate – potash projects

Kalium Lakes’ acknowledges the McGowan Government’s commitment to assist the development of the unique potash and minerals in brine industry in Western Australia, through the introduction of a new rental rate for potash projects that are granted a new class of mining lease for restricted minerals. The existing rental rate of AUS$18.70/ha has been determined to be inappropriate for industrial minerals in brine due to the fact that these operations require larger mining leases than other forms of mining.

Once approved, minerals in brine mining leases will benefit from a reduced rental rate set at:

• AUS$2.32/ha for the first five years of the lease; and

• AUS$4.64/ha from year six onwards.

The new potash rental rates are expected to come into effect early in 2019.

Carnegie Potash Project - Joint Venture

The Carnegie Joint Venture (CJV) is focussed on the exploration and development of the Carnegie Potash Project (CPP) in Western Australia, which is located approximately 220 km east-north-east of Wiluna. The CJV comprises one granted exploration licences (E38/2995) and five (5) exploration licence applications (E38/2973, E38/2928, E38/3297, E38/5296, and E38/3295) covering a total area of approximately 3040 km2.

This project is prospective for hosting a large sub-surface brine deposit which could be developed into a solar evaporation and processing operation that produces sulphate of potash (SOP). The Carnegie Project tenements are located directly north of Salt Lake Potash Limited’s (SO4).

The CJV is a Joint Venture between Kalium Lakes (KLL, 70% Interest) and BCI Minerals (BCI, 30% interest). Under the terms of the agreement BCI can earn up to a 50% interest in the CJV by predominantly sole-funding exploration and development expenditure across several stages. KLL is the manager of the CJV and will leverage its existing intellectual property to fast track work.

Other activities

Other activities undertaken during and subsequent to the quarter included:

  • Ongoing offtake agreement work associated with conversion of the K+S Terms Sheet to a formal, binding offtake agreement.
  • Continued advancement of project financing.
  • Heritage surveys for the clearance of land for infrastructure and evaporation ponds.
  • Various Investor presentations and conferences.

Planned activities for next quarter

The company's main objectives and planned activities include:

  • Finalise binding offtake agreement with K+S.
  • EPA, EPBC, and other regulatory assessment and approval completion.
  • Finalise Front End Engineering and Design (FEED) work.
  • Ongoing debt funding activities with domestic and international financial institutions.
  • Various Investor presentations and conferences.

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