Kalium Lakes to become one of world’s lowest cost potash producers

Source: Kalium Lakes

Kalium Lakes’ front-end engineering design (FEED) works at its Beyondie sulphate of potash project (BSOPP) in Western Australia have delivered improved production and financial outcomes.

Production rates have increased by 10 per cent to a 90,000 tonnes per year SOP stage one facility, ramping up to double the rate at full scale.

Beyondie’s operating costs have also experienced a significant reduction from $US226–$263 ($318–370) to $US179–$207 per tonne over a mine life in excess of 30 years.

This places Kalium Lakes as the second or third lowest cost producer in the world.

“The completion of FEED works continues to confirm and improve on our bankable feasibility study released in September last year,” Kalium Lakes managing director Brett Hazelden said.

“The significant reduction in operating costs means that Kalium Lakes is likely to become one of the lowest cost producers in the world. Ensuring we can operate profitably, throughout the normal commodity pricing cycles, continues to be a key focus for the company.”

Kalium Lakes last month received $74 million in funding through the Northern Australia Infrastructure Facility (NAIF), which has delivered cost saving benefits through the installation of a gas pipeline and gas fired power station.

FEED works at Beyondie have also de-bottlenecked its process plant, increasing potassium recovery from the flotation tails stream.

Kalium Lakes expects to award engineering, procurement and construction awards in the first quarter of 2019, and reach a final investment decision in the second quarter of 2019.

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