Kalium Lakes’ bankable feasibility study (BFS) has returned a 90 per cent increase in its Beyondie sulphate of potash project (BSOPP) ore reserves, totalling 5.1 million tonnes (Mt) SOP.
These oustanding outcomes have extended Beyondie’s mine life to a minimum of 30 years.
Once operation begins, Beyondie will become Australia’s first domestic producer of SOP, which is a preferred source of potassium — an essential plant nutrient — in the agricultural industry.
Additionally, Kalium Lakes has executed offtake agreements with German fertiliser producer and distributor K+S for 100 per cent of its phase one production. These will be finalised by the end of 2018.
K+S is the second largest producer of SOP in the world.
Beyondie’s BFS shows that it has a 19.6Mt SOP drainable brine resource, while reporting an increase in production rates by 10 per cent. By 2020, Kalium Lakes expects Beyondie to ramp up to a full-scale capacity of 164,000t/y, up from 82,000t/y.
The company estimates an average EBITDA of $116 million per year, which represents an EBITDA margin of 61 per cent.
Earlier in September, Kalium Lakes was in talks with Australian Government-backed Northern Australia Infrastructure Facility (NAIF) for the funding of Beyondie. This has now been progressed, on top of low-cost financing by German Export Credit Agency Euler Hermes.
Beyondie is 160 kilometres south east of Newman in Western Australia.