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Potash West has conducted two new studies for its Dinner Hill project. It believes they could help the company save money and generate revenue.
Potash West (ASX:PWN) has conducted new studies on its Dinner Hill potash project, and it believes they will help the project move towards a definite feasibility study and generate revenue.
The new study looks at the potential to produce single superphosphate using a standalone plant for the first five years of operation, with the integration of a joint facility to produce potash and other products coming after that.
“Bringing the two projects together then gives us a lower risk, lower capital start up,” said Patrick McManus, managing director of Potash West, in an interview with ABN Newswire. “Then we can time our entry into the K-Max process … depending on the market.”
The Australian company is looking to develop the project in Western Australia. Exploration has been carried out by aircore drilling to test for greensands.
The K-Max process was designed by Potash West, and it involves the production of sulfate of potash (SOP), high-magnesium SOP, single superphosphate, iron oxide and aluminum sulfate from glauconite.
Single superphosphate is primarily used as a crop nutrient. It is considered the cheapest phosphate to produce, and can be blended with other fertilizer products.
The hope is for the phosphate to possibly fund the roughly $590 million capital expenditure required in the second stage.
Shares of Potash West were at $0.045 at last trading.
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.
Editorial Disclosure: Potash West is a client of the Investing News Network. This article is not paid-for content.