Name of the Project
Beyondie sulphate of potash project (BSoPP).

Location
Western Australia.

Project Owner/s
Kalium Lakes Limited (KLL).

Project Description
A definitive feasibility study (DFS) on the BSoPP has demonstrated that the project is economically and technically robust and has the potential to generate substantial value for shareholders.

Based solely on the Stage 1 approval footprint, which represents less than a quarter of the total lake surface area within the tenement package, the project has a proven reserve of 1.65-million tonnes, grading 13 830 mg/ℓ sulphate of potash (SoP) at a cutoff grade of 2 500 mg/ℓ potassium and a probable reserve of 3.49-million tonnes grading 11 820 mg/ℓ SoP at a cutoff grade of 2 500 mg/ℓ potassium.

The DFS proposes the development of a subsurface brine deposit to initially produce 82 000 t/y of SoP before expanding to produce 164 000 oz/y of SoP product through evaporation and processing within the Stage 1 Beyondie, 10 Mile and Lake Sunshine tenement holdings. Further expansion into the eastern tenement area – Stage 2 – could result in future expansion of up to 250 000 t/y of SoP. BSoPP has a mine life of 30 years.

Potential Job Creation
The project is expected to create 130 jobs during construction, 45 jobs during operation and produce a crucial fertiliser to support Australia's farmers and strengthen food security.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$575-million and an internal rate of return of 20.4%, with an initial payback of seven years.

Capital Expenditure
Preproduction capital for Stage 1 is estimated at A$159.6-million. A deferred capital cost of A$125.3-million is required to ramp up the project to 164 000 oz/y.

Planned Start /End Date
Production is expected in 2020.

Latest Developments
The Northern Australia Infrastructure Facility (NAIF) will invest A$74-million in Australia's first plant to produce SoP.

The NAIF funding will consist of a A$48-million infrastructure development facility and up to A$26-million for a project development facility.

Kalium Lakes has said that the 15-year tenor and the concessional terms of the infrastructure development facility will enable the company to bring forward the construction of a A$29-million, 78 km lateral gas pipeline to connect the Goldfields gas pipeline and an on-site, gas fuelled power station into Phase 1 of the project.
The infrastructure development facility will also fund upgrades to the 78 km unsealed road connecting the project site to the Great Northern Highway, new communication infrastructure, an airstrip and accommodation village.

Key Contracts and Suppliers
KLL (DFS), K-UTEC, DRA Global, Advisian, Shawmac, Wyntak and Preston Consulting (principal technical consultants); RSM, DLA Piper Australia, HopgoodGanim Lawyers and BurnVoir Corporate Finance (accounting, legal, commercial and financial advisers).

On Budget and on Time?
Not stated.

Contact Details for Project Information
KLL, tel +61 8 9240 3200 or email info@kaliumlakes.com.au.