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

Location
Western Australia.

Project Owner/s
Kalium Lakes Limited (KLL).

Project Description
The front-end engineering and design (FEED) for the Beyondie has delivered even further improved production and financial outcomes, including:

• a 10% increase in the production rate, from 82 000 t/y of sulphate of potash (SoP) in the September 2018 bankable feasibility study (BFS) to an estimated 90 000 t/y Stage 1 SoP facility, ramping up to a 180 000 t/y full-scale facility (BFS 164 000 t/y) proposed in the FEED;

• an overall system potassium recovery improvement from 72% to 91%, as a result of debottlenecking the process plant and an increase in the potassium recovery from the flotation tails stream; and

• a decrease in the total evaporation pond size from 445 ha to 399 ha.

The initial mine life is estimated at more than 30 years and up to 50 years.

The SoP product quality has remained the same, at a premium 51% to 52% potassium oxide, with negligible chloride and minimal insoluble material.

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’s pretax net present value has increased from of A$575-million, at an 8% discount rate in the BFS, to A$606-million in the FEED, while the internal rate of return of has decreased from 20.4% 20.3%.

The September 2018 BFS estimated an initial payback of seven years.

Capital Expenditure
Preproduction capital for Stage 1 has increased from A$159.6-million in the DFS to A$216-million in the FEED.

Planned Start/End Date
Commissioning and ramp-up to nameplate throughput is expected in 2020.

Latest Developments
Kalium Lakes is hoping to raise A$72-million through an institutional placement and an accelerated nonrenounceable entitlement offer to fund the construction of its BSoPP, as well as the working capital to first production.

Kalium announced a share placement on July 24 of up to 35-million new shares to institutional investors, to raise an initial A$17.5-million. The share placement will be priced at 50c a share, representing a 26.5% discount to the company’s last closing share price.

A 1-for-2.19 accelerated pro rata nonrenounceable entitlement offer, under which up to 109-million shares will be placed, is expected to raise an additional A$54.6-million.

“The successful completion of today’s equity raising together with finalisation of the loan facilities, will ensure that Kalium Lakes is fully funded to develop the Beyondie project, following our announcement . . . regarding the approval by the German government credit agency Euler Hermes in respect of the A$102-million KfW IPEX-Bank debt facilities,” Kalium Lakes MD Brett Hazelden has said.

“After the raise and final debt documentation, we will be in a position to approve our final investment decision and immediately start the development of the Beyondie project so that Kalium Lakes becomes Australia’s first SoP producer in 2020.”

Kalium’s major shareholder, Greenstone Management, which holds a 19.8% interest in the company, has committed to subscribe for new shares under the placement and will take up its entitlement offer, contributing about A$14.46-million to the capital raise.

Certain other founding shareholders have also thrown their support behind the endeavour, committing to take up a combined A$8-million of the offer.

Key Contracts and Suppliers
KLL (DFS), K-UTEC, DRA Global, Advisian, Shawmac, Wyntak and Preston Consulting (principal technical consultants and FEED); 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.