Kalium Lakes has moved forward with its plans to become Australia’s first domestic producer of sulphate of potash (SOP) with the approval of a major funding boost.
The company’s Beyondie SOP project has received the Board of the Northern Australia Infrastructure Facility (NAIF)’s support for a $74 million long-term loan.
The funding would enable Kalium to bring forward the construction of a 78-kilometre gas pipeline and a gas fired power station, potentially reducing Beyondie’s operating costs by around $62 to $65 per tonne.
It would also facilitate the construction of infrastructure such as road and communication, an airstrip and an accommodation village.
Kalium announced earlier this week that it has all the required approvals for the project including those of the airstrip and project village.
“Our team is very proud of the fact that NAIF recognises the public benefits of the Beyondie SOP project, including providing a domestic source of a fertiliser which plays a significant role in improving agricultural yield and productivity, an Indigenous engagement strategy and the creation of jobs in local communities,” Kalium managing director Brett Hazelden said.
“This positive investment decision by NAIF, which has been incorporated into the front end engineering and design report, is further confirmation that all the fundamentals for the Beyondie SOP project stack up and takes us one step closer to a final investment decision by Kalium.”
The loan facility by NAIF includes the provision of $48 million infrastructure development facility and up to $26 million for a project development facility.
The facilities were subject to several conditions including the Western Australian Government’s final approval.
Kalium’s planned gas pipeline, estimated at $29 million, will connect the Goldfields gas pipeline and an on-site gas fuelled power station into phase one of the project, with possibilities of outsourcing the gas supply and power generation to a third party provider.
Its accommodation village is expected to support more than 120 people.