Kalium Lakes Limited
KLL is an exploration and development company focused on developing the 100% Owned Beyondie Sulphate Of Potash Project (BSOPP) in Western Australia with the aim of commencing production at 90ktpa of Sulphate Of Potash (SOP) before ramping up to 180ktpa of SOP for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life and high margin producer.
The Project covers an area of approximately 1,760 square kilometres, comprising 16 granted exploration licences, 15 granted miscellaneous licences, two granted mining leases and a gas pipeline licence. Kalium Lakes is developing a sub-surface Brine deposit to produce a SOP product, by undertaking an evaporation and processing operation 160 kilometres south east of Newman.
KLL announced a Final Investment Decision on 3 October 2019 and is now proceeding with full construction activities, with production anticipated in 2020.
Kalium Lakes has entered into a Binding Offtake Agreement with pre-eminent international SOP producer and distributor, K+S. The Agreement includes the following key elements:
- An initial 10-year term to provide K+S with 90,000tpa of SOP products, representing 100% of the anticipated production from Phase 1 of the Beyondie Sulphate of Potash Project.
- Pricing is linked to the sales price realised by K+S, which will also receive a marketing fee for selling and distributing the SOP product.
- K+S offers Kalium Lakes unparalleled expertise and technical support in relation to design, construction and commissioning.
Kalium Lakes adheres to the JORC 2012 Code and the Canadian Institute of Mining, Metallurgy and Petroleum Best Practice Guidelines for Resource and Reserve Estimation for Brines (CIM Guideline).
In addition, the Company is part of the Association of Mining and Exploration Companies (AMEC) Potash Working Group and recognises that the Joint Ore Reserve Committee (JORC) has adopted the “Guidelines for the Resource and Reserve Estimation for Brines” that had been jointly developed by the Australian SOP Brine Industry and its specialist hydrogeologists in conjunction with AMEC.