Kalium Lakes’ share price soared 11.43 percent on Tuesday, ending the day of trading on the ASX at AU$0.39.
News hit Monday (February 18) morning that Kalium has been granted all necessary tenure from the Department of Mines, Industry Regulation and Safety. This includes two mining leases, a gas pipeline license and 15 miscellaneous licenses, along with 15 previously granted exploration licenses.
The tenure covers activities at Beyondie such as evaporation ponds, SOP purification, mining and brine extraction. All the leases and licenses have been granted with the consent of determined native title holders, being the Gingirana People and the Birriliburu People.
“The grant of all of our mining tenure requirements allows the full value chain to be accomplished including, extraction of the brine, evaporation to form salts, SOP purification and haulage to the Australian agricultural industry or an export port,” said Kalium Managing Director Brett Hazelden.
“Kalium Lakes is the only company to have all the tenure requirements granted to develop what we expect will be the first commercial SOP production facility in Australia,” he continued.
“We would like to thank the Gingirana People and the Birriliburu People traditional owners for their consent and ongoing support of the project.”
The last license the company is waiting on is a 16th exploration license for the 10 Mile West area, which remains in the application stage.
The company anticipates first production from Beyondie in 2020, with a planned production rate of 82,000 tonnes per year of SOP, to later be ramped up to 164,000 tonnes per year of SOP. The project is docketed to have a 30- to 50-year mine life, and is set to become Australia’s first SOP production facility.
SOP can be used as a fertilizer that helps retain water in plants, increase yields and improve taste, and is considered a premium-quality potash over its similar counterpart, muriate of potash.
Kalium locked in a 10-year offtake agreement with German fertilizer producer K+S (ETR:SDF) in June 2018 for 75,000 tonnes of SOP from Beyondie annually.
The company’s share price soared 11.43 percent on Tuesday (February 19), ending the day of trading on the ASX at AU$0.39.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.