Junior sulfate of potash producer Kalium Lakes Ltd., Balcatta, Western Australia, said on Sept. 5 the Australian Federal Government has recognized the Beyondie Sulfate of Potash Project’s (BSOPP) strategic significance to Australia by granting it Major Project Status. The designation is the government’s formal recognition of the national strategic significance of a project, through its contribution to economic growth, employment, or contribution to regional Australia. In addition, it provides coordination and facilitation support, as well as a single entry point to a coordinated approvals process.
The Major Projects Facilitation Agency assessed the BSOPP against the required eligibility criteria and made the recommendation to the Minister for Industry, Science, and Technology, the Hon. Karen Andrews MP.
“Receiving Major Project Status from the Australian Federal Government emphasizes the importance of our project to the Australian Agricultural Industry,” said Kalium Lakes Managing Director Brett Hazelden. “Currently, there is no production of Sulfate of Potash in Australia, with all of this nations’ requirements being met by product imported from the northern hemisphere. The development of the Beyondie Sulfate of Potash Project will greatly enhance the ongoing security of potash supply for Australian farmers.”
The eligibility criteria for Major Project Status includes:
- The project is of strategic significance to Australia, specifically: the project’s estimated investment exceeds A$50 million, and makes a significant contribution to economic growth, exports, employment, and/or infrastructure development; or the project will have significant net economic benefit for regional Australia, taking account of a region’s investment needs.
- The project requires Australian Government approvals administered under Australian Government legislation; or the project has significant Australian Government involvement, including through government programs.
- The project has sufficient financial resources and support to complete the Australian Government approvals process and has reasonable commercial viability.
Kalium, which recently completed its last funding component (GM Aug. 30, p. 1), is targeting a 90,000 mt/y SOP stage 1 production facility, ramping up to an 180,000 mt/y SOP full-scale facility, with first output targeted for 2020 (GM March 29, p. 1). A final decision to proceed with the project is expected this quarter.
Kalium has a 10-year offtake deal in place with Germany’s K+S Group for the purchase of 90,000 mt/y of SOP from Beyondie. Kalium expects to produce 25,000-35,000 mt/y of standard SOP (51 percent K2O <1 percent CL) from fourth-quarter 2020, 50,000-60,000 mt/y of granular (51 percent K2O <1 percent CL) from first-quarter 2021, and 10,000-20,000 mt/y soluble SOP (52 percent K2O <.5 percent) in 2022.
Currently, Australia has no SOP production, and K+S supplies over 50 percent of the Australian and New Zealand markets. Kalium put Australian SOP demand at 75,000 mt/y and New Zealand at 20,000 mt/y.