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 the 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 and 45 jobs during operation, as well as 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
The 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
Kalium Lakes has secured A$102-million in debt funding for its Beyondie SoP.

The company has signed a nonbinding termsheet with German bank KfW IPEX-Bank to provide the senior debt funding for the development of the project.

The KfW IPEX-Bank funding has a ten-year tenor, complementing the A$74-million investment by the NAIF.

KfW IPEX-Bank is finalising its due diligence, and has started its credit approval process.

The A$250-million Beyondie project will produce 150 000 t/y SoP, with the option to incrementally phase the project through a ramp-up from 75 000 t/y to 150 000 t/y to minimise operational and financial risks.

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?
The project is on schedule to start first SoP production in 2020.

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