Kalium Lakes Awards Potash Project Development Contracts

- May 27th, 2019

The four key contracts total more than AU$60 million and will cover engineering, procurement, construction management and commissioning for a purification plant and facilities.

Australian potash explorer Kalium Lakes (ASX:KLL) has awarded the contracts for the development of a purification plant and facilities at its Beyondie sulfate of potash (SOP) project.

The four key contracts total more than AU$60 million and will cover the engineering, procurement, construction management and commissioning of the purification plant and facilities.

Located in the East Pilbara region of Australia, Kalium’s Beyondie SOP project will be the first of its kind on the continent, with initial production expected in 2020.

Kalium’s announcement notes that all granted contracts fall in line with the budget outlined in a 2018 bankable feasibility study, as well as with front-end engineering and design guidelines.

The engineering and procurement contract, as well as supervision and commissioning services, will be fulfilled by German company Ebtec. International engineering and management firm DRA Global will oversee project delivery, while Maschinenfabrik Köppern will construct the compaction plant used in the production of granular SOP.

Lastly, Firm Construction will work on the construction of various aspects of the project and ensure the Beyondie project site is operating in accordance with the office of the Federal Safety Commissioner.

Finding partners with the ability to develop the project Kalium has envisioned was top of mind during the selection process. The company also considered prospective firms’ ability to work in conjunction with each other and to complete work in a timely matter.

“Companies with SOP specific experience and capabilities are hard to find, especially when looking for those that have taken projects from design into execution, then on to production,” Rudolph van Niekerk, Kalium Lakes’ chief development officer, said in a press release.

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“After years of investigation and months of negotiation, we have compiled a contracting strategy that brings a bankable solution, as well as achieving the next significant milestone to take us into the development stage of the project.”

Early work may now commence at the site, with the full scope of the project being subject to a final investment decision. Kalium has stipulated a 15 month construction schedule in the contracts, with a subsequent commissioning and ramp up period.

The company has been working to steadily advance the SOP project and announced it had secured an additional AU$20 million in funding in early April.

Shares of Kalium Lakes were up 1.61 percent on Monday (May 27), trading at AU$0.63.

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

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