Australian Potash has penned its first offtake contract with Redox to supply 20,000 tonnes per annum of sulphate potash from the Lake Wells sulphate of potash (SOP) project in Western Australia.
The contract awards Redox control over the sale and distribution of 20,000 tonnes of K-Brite across Australia and New Zealand through a binding 10-year take-or-pay term sheet.
“We are pleased to announce the first binding term sheet for offtake supply, covering sales and distribution rights to K-Brite in Australia and New Zealand,” Australian Potash managing director and chief executive officer Matt Shackleton said.
Lake Wells is 100 per cent owned by Australian Potash, with the the resource proving vital to the agricultural industry.
The project is expected to have a 30-year life span with a production capacity of 150,000 tonnes per annum of premium grade sulphate of potash, with most expected to be distributed through offtake agreements.
“Our new partnership with long-established Australian company Redox, who from its Sydney base has built broad trade relationships and an extensive global distribution network, delivers (Australian Potash’s) first step in the larger offtake program,” Shackleton said.
“The emerging Australian SOP sector is gaining credibility on the international stage, and it is pleasing to see (Australian Potash’s) rigorous approach to both the technical and commercial aspects of its solar salt SOP project being recognised.”