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- Kalium Lakes (KLL) completes an expanded feasibility study for its flagship Beyondie Sulphate of Potash (SOP) project in Western Australia
- The new study expands Kalium’s production base for the SOP project to 120,000 tonnes per year from an initial target of 90,000 tonnes per year
- It has incremental capital expenditure of $45 million for the 30,000-tonne-per-year expansion but a lower capital cost intensity of $1513 per tonne
- Kalium plans to kick off first production from the project by the end of September this year
- Investors have reacted poorly to today’s announcement, with Kalium Lakes shares closing down 16.30 per cent at 18 cents each
Kalium Lakes (KLL) has officially completed an expanded feasibility study for its flagship Beyondie Sulphate of Potash (SOP) project in Western Australia.
The new study expands Kalium’s production base for the SOP project to 120,000 tonnes per year as it ticks the final boxes necessary to complete the project’s development.
Kalium plans to kick off first production from the project by the end of September this year, making Beyondie one of Australia’s first-ever local SOP producers.
The company’s initial feasibility study set a target production base of 90,0000 tonnes of SOP per year, but this was then expanded to 100,000 tonnes per year. The newest expansion to 120,000 tonnes per year builds on these production targets, with plans to have full production up and running by October 2022.
Kalium said the expanded feasibility study offered improved economics of scale to offset wide and macro-economic costs pressures. It comes with incremental capital expenditure of $45 million for the 30,000-tonne-per-year expansion, but a lower capital cost intensity of $1513 per tonne.
According to Kalium CEO Rudolph van Niekerk, the company is on the way to becoming one of Australia’s first local SOP producers thanks to the support of its “world-class” stakeholders.
“We are firmly committed to being a key, long term supplier to the Australian agricultural sector, enabling our farmers to provide nutrition for the world,” Mr van Niekerk said.
He said the company was “acutely” aware of a recent surge in global fertiliser prices alongside inflationary headwinds thanks to COVID-19.
This is expected to drive a forecast in operating costs across the Australian mining industry, hence the expansion of the Beyondie feasibility study to create a low capital intensity project for the company.
“The proposed expansion will put Kalium Lakes on a stronger platform as well as maximise the benefit from the higher SOP prices that we have seen recently,” Mr van Niekerk said.
In light of the bolstered production base for the project, Kalium has extended an offtake deal with Germany-based K+S to cover the expanded production levels.
Nevertheless, investors have reacted poorly to today’s announcement, with Kalium Lakes shares tumbling 16.28 per cent and closing at 18 cents each.
