Agrimin Awards Construction Contract, Advances Potash Project

July has been a busy and productive month of wheeling and dealing for Australian potash company Agrimin (ASX:AMN).  

The company awarded a construction contract for its Mackay potash project, expanded its product offerings and penned a memorandum of understanding with a local native title holder group.

The recently finalized construction contract will see Primero Group (ASX:PGX) engineer a design for a process plant, which will be located at the Mackay site.

Primero is an internationally recognized engineering firm specializing in the design, construction and subsequent commissioning of various resource projects around the world.

“This engagement follows a competitive process to select a contractor with suitable experience and capabilities to undertake both the engineering design and subsequent construction of the process plant and associated site based non-process infrastructure,” states the Agrimin press release.

Currently, designs for the process plant are being reviewed following the completion of process modeling.

As mentioned, the recent contract granting isn’t the only news from the Australian potash company this month. On July 8, Agrimin announced plans to extend its specialty potash product range beyond its current roster.

Agrimin will now offer a sulfate of potash magnesia (SOPM) product, ideal for use on high-value crops such as fruits, vegetables and tree nuts, as well as for use on pasture for livestock.

“We are excited to expand and diversify our product range with a high-quality SOPM fertilizer. Based on five years of engagement with the fertilizer industry, we believe this product has excellent market potential, especially in Agrimin’s key target markets,” said Mark Savich, CEO of Agrimin.

“A broader product range will allow Agrimin to adapt its product mix to suit market demand and to build strong brand value for our products. Ultimately, we expect this to deliver greater market share over the long-term,” he continued.

Lastly, the month started positively for the sulfate of potash and SOPM producer, as it was able to pen a memorandum of understanding with Parna Ngururrpa — the registered native title body representing the title holders for the land in and around Mackay.

The agreement covers the construction of a haul road and borefield, as well as the expansion of brine extraction infrastructure.

In an announcement, Tom Lyons, general manager of Agrimin, pointed out the potential the project will bring to the area in terms of infrastructure development and employment. He also cited the need to work alongside the native title holders to “protect and preserve their country and culture.”

Shares of Agrimin were down 2.86 percent on Wednesday (July 17), trading at AU$0.68.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.