Kalium Lakes expects to make a final investment decision (FID) for the Beyondie sulphate of potash (SOP) project in Western Australia this quarter following a funding approval from the German Government.
The German Government’s inter-ministerial committee (IMC) approved a €33 million ($52.56 million) facility from export credit company Euler Hermes, announced as part of a larger funding package on July 2. The government approval was a key condition for receiving the funds, which come from Germany-based KfW IPEX-Bank.
Kalium Lakes is on track to make history as Australia’s first producer of SOP once the final investment decision is made, having already gained all necessary mining and environmental approvals.
The potash mining sector is dominated by countries such as Canada, Russia, Belarus and China, which account for more than half of global production.
Kalium Lakes managing director Brett Hazelden said the company was “delighted” to have received a positive outcome of the application.
“The completion of this significant funding requirement brings us closer to a final investment decision, which remains on track for this quarter and progresses our goal of becoming Australia’s first SOP producer,” he said.
The €33 million comprises the first part of an approved loan package from Germany-based bank KfW IPEX-Bank. The second part of the funding is a $US37 million ($52.54 million) secured against the Beyondie project. These funds will be added to the $74 million already secured from the Northern Australia Infrastructure Facility (NAIF) in February.
Kalium Lakes has proposed to begin construction around 15 months after the FID, with commissioning and ramp up to nameplate capacity to follow by the fourth quarter of 2020.
Beyondie has a projected mine life of up to 50 years based on a 5.1 million tonne ore reserve. The company is aiming to produce 90,000 tonnes of SOP a year initially with a ramp up towards 180,000 tonnes a year.