Kalium Lakes has received board approval for its Beyondie sulphate of potash (SoP) project, allowing full-scale construction to begin at the Western Australian operation.
The final investment decision allows the acceleration of activities from current approved early works programs to construction, meaning the company will now look to finalise remaining construction contracts.
It follows Kalium’s completion of a $72 million capital raise in August, in conjunction with the loan facilities provided by KfW IPEX-Bank ($102 million) and Northern Australia Infrastructure Facility ($74 million), plus a working capital facility from Westpac ($15 million).
Kalium Lakes chairman Mal Randall said the decision was “the most significant in Kalium Lakes’ relatively short history.”
“This milestone effectively triggers the use of the company’s financial capacity, to transform our core objective of becoming Australia’s first commercial SoP producer into reality,” he said.
“The world-class Beyondie SoP project is now on track to join only a handful of existing primary SoP production facilities that are sparsely found around the world.”
Kalium Lakes also received the support and consent of the Traditional Owners from the Gingirana and Birriliburu People, who undertook a welcome to country ceremony on site.
The company’s managing director Brett Hazelden spoke at the ceremony, reflecting on Kalium Lakes’ history which began just five years ago.
“To be able to have the support of the Traditional Owners over this period has been key to the success of the project and we look forward to everyone’s involvement during the coming decades,” Hazelden said.
“Kalium Lakes looks forward to Australian and New Zealand farmers being able to utilise our SoP towards the end of 2020, with full production capacity achieved in 2021.”