Salt Lake Potash has signed an agreement with Mitsui & Co for the sale of premium water soluble sulphate of potash (SOP) from the Lake Way project in Western Australia.
The agreement entails the sale of SOP into Bangladesh, Cambodia, Japan, Malaysia, Philippines, South Korea, Sri Lanka and Taiwan over a period of five years.
Salt Lake will initially provide Mitsui with 4000 tonnes of SOP a year over five years, before signing a further agreement to sell additional tonnes into emerging markets.
The company has now secured a total offtake for 224,000 tonnes of the 245,000 tonnes annual capacity at Lake Way.
Salt Lake plans to sell the remaining 21,000 tonnes into local and spot markets.
“The agreement represents a further endorsement from a major global fertiliser distributor for both the Lake Way project and its premium SOP product,” Salt Lake stated in an ASX announcement.
“The company now has a global portfolio of five offtake partners covering sales across six continents.”
Salt Lake stated that the water soluble market provided premiums of up to 20 per cent above standard SOP pricing, delivering competitive advantage in the seabourne SOP market.