Kalium Lakes Potash Market Analysis
Kalium Lakes has conducted a review of the potash market utilising leading industry market research reports and has formed the view that whilst the MOP market is well supplied, the premium SOP market remains undersupplied. It is notable that there is no commercial production in Australia which consumes a combined total of ~485ktpa MOP and SOP being the most recent figures for 2020. Given these factors, Kalium Lakes is of the view that an opportunity exists to capture the Australian supply market for SOP with opportunities to extend into Asia and the sub-continent. Current retail pricing in Australia is more than A$850-875/t SOP.
It is noted that existing Brine hosted SOP producers are comparatively low cost when compared to secondary Mannheim SOP producers as detailed in leading industry market research reports. Refer to the Independent Expert’s Report for further information. With an ongoing increase in world population, an ever decreasing arable land per capita, continued economic growth in developing economies and degradation of soils worldwide, a continuing demand for the key plant nutrients of Nitrogen, Phosphorous and Potassium, supports the supposition that world fertiliser demand is forecast to continue to rise.
Based on this outlook, the Board is of the view that it is likely to see strong demand for its SOP product with potential market upside from co-products including Magnesium Sulphate (MgSO4 or Epsom Salts) and Magnesium Chloride (MgCl2 or Bischofite) and Magnesium Hydroxide (Mg(OH)2) which Kalium Lakes believes could be produced from the Beyondie Potash Project Brine.