Kalium Lakes has awarded key contracts to Shell Energy Australia and APA Group for the transportation and supply of gas to meet the requirements of its Beyondie sulphate of potash project (BSOPP) in Western Australia.
These contracts will provide one terajoule of gas a day to produce 90,000 tonnes of SOP a year, while allowing for increased output and production of magnesium by-products.
Kalium has awarded Shell with the contract for supply of gas to the BSOPP site, which will be used for power generation, steam generation and product drying during operations.
APA Group’s Goldfields Gas Pipeline (GGP) will transport and deliver gas via a purpose-built metering and connection facility.
Kalium Lakes has commenced early works with APA on the design of the metering facility.
“The close proximity and ease of access to the GGP offers significant cost advantages to the BSOPP, which has allowed Kalium Lakes to own and operate its own gas pipeline, spur and gas fired power station with funding provided by the Northern Australia Infrastructure Facility (NAIF),” Kalium chief development officer Rudolph van Niekerk said.
The contracts are within the budget Kalium Lakes allocated in the bankable feasibility study and front end engineering design outcomes.
They are subject to a final investment decision and subsequent notice from Kalium Lakes to commence commissioning and production operations.
Kalium Lakes is targeting BSOPP initial production during 2020. The BSOPP has a mine life of up to 50 years based on 5.1 million tonnes ore reserve.