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Kalium Lakes to supply K+S with potassium sulfate

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World Fertilizer,

K+S has entered into an agreement with the Australian company Kalium Lakes for the purchase of up to 90 000 t of the specialty fertilizer potassium sulfate (SOP) per year.

The agreement has a term of ten years and ensures that K+S has exclusive access to the first SOP production in Australia.

“The agreement with Kalium Lakes fits perfectly to our Shaping 2030 strategy, which among other things provides for the expansion of the specialty business,” said Alexa Hergenröther, CEO of Operating Unit Europe+. “The additional quantities of potassium sulfate will supplement our product range from our own SOP production in Germany. At the same time, we can better serve existing customers and gain new customers.”

Kalium Lakes plans to develop an underground brine deposit in the Pilbara region of Western Australia and to produce SOP from the extracted brine by solar evaporation method. The final investment decision by Kalium Lakes will be taken in 2Q19.

Approximately 15 months are estimated for the construction of all necessary production facilities, so that the first significant quantities of SOP are expected by the end of 2020/beginning of 2021. The deal does not require K+S to commit capital.

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