Australian Potash has received a $140 million loan facility to further develop the Lake Wells Sulphate of Potash (SOP) project near Laverton, Western Australia.
The Northern Australian Infrastructure Facility (NAIF) made the decision to award the 17-year contract to the company after assessing the project, which is the lowest CO2 emitting SOP project in Australia.
Australian Potash managing director and chief executive officer Matt Shackleton welcomed the loan facility.
“We are very pleased to advise the first major step in financing the development of Lake Wells, with the board of NAIF resolving to support this regionally important project that returns strong social and economic benefits,” he said.
Shackleton outlined how the company will support local landowners and community members, with approximately 30 per cent of contracts awarded to Northern Australian companies, and 20 per cent to Indigenous companies.
“We continue to enjoy strong relationships with stakeholders in the local community of Laverton, and importantly with senior traditional owners,” Shackleton said.
“Through our initiatives including the Laverton STEM Program, the Laverton VTEC Program, and our local and indigenous employment commitments we are able to tangibly demonstrate our commitment to improving economic and social values in the region.”
With financing assured, Shackleton said the company can now focus on putting the money to best use.
“We now turn our attention to closing out the balance of the development financing pathway, and to moving into the pre-mobilisation phase for the development of the Lake Wells Sulphate of Potash project,” he said.
“Lake Wells is a substantially de-disked, technically sound, low cost and socially responsible project that will deliver a premium product for at least thirty years.
“We now look forward to delivering the results of the FEED study and announcing a FID.”