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Salt Lake Potash to implement revised ramp-up strategy

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World Fertilizer,

Salt Lake Potash (SO4) has announced that it will be implementing a revised ramp-up strategy at its Lake Way sulfate of potash (SOP) project in Western Australia that involves suspending the initial plant feed programme following the processing of the first 90 – 110 000 t of harvest salts, to enable more salts to precipitate before commencing continuous harvesting activities.

As a result of the revised pond ramp-up schedule and associated delayed plant feed salt availability, forecasted SOP production for FY22 has been reduced and the company will require further funding before the end of 2021 to continue operations at Lake Way. Discussions to resolve the funding shortfall have commenced and once complete and agreed will be announced to the market.

The reduction in plant feed salt availability is expected to reduce primary SOP production in FY22 from 165 – 185 000 t to 85 –105 000 t.

There is no anticipated impact on production levels in FY23 and beyond, with full production run-rate from primary salts still anticipated in the June 2022 quarter.

Tony Swiericzuk, Salt Lake Potash CEO, said: “The entire SO4 team is committed to the success of the Lake Way project and has been working tirelessly through the harvest salt pond management system and plant commissioning challenges over the last few weeks. We are disappointed these challenges have pushed out our expected ramp up profile however the project fundamentals remain attractive. I am grateful for the support and patience of our shareholders and our lenders as we work towards delivering first SOP and positive cash flow.”

The company has also said that construction and practical completion of the Lake Way process plant has been finalised with GR Engineering Services handing over the plant to SO4 in late June. Each of the 34 process units in the plant have been individually commissioned and the SO4 operations team is now working through the ‘Stage 4’ load commissioning process.

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