Junior sulfate of potash (SOP) producer Salt Lake Potash Ltd. (SO4), Perth, Western Australia, has awarded key construction contracts for its Lake Way SOP project in the northern Goldfields region of Western Australia.
Perth-based GR Engineering Services Ltd. will build both the process plant and non-process infrastructure at Lake Way. The first contract, covering engineering, procurement, and construction (EPC) at Lake Way, is valued at A$85 million (approximately US$58.8 million at current exchange rates). It covers plant, labor, materials, and construction services for the process plant.
The second contract, which is worth A$22 million, will involve the provision of services for the engineering, procurement, and construction management (EPCM) for both Lake Way’s process plant and other infrastructure.
The process plant has been designed by both GR Engineering and Aberdeen, U.K.-headquartered Wood plc. The plant is a simple reverse flotation, conversion, and re-crystallization process utilizing well-established technology.
“The finalization of these major project contracts and the substantial engineering and procurement activity to date has further de-risked the Lake Way project execution and confidence around the capital budget,” said SO4 CEO Tony Swiericzuk.
Lake Way’s capital budget is now put at A$264 million, a A$10 million increase on the published Bankable Feasibility Study figure in October 2019. The revised A$264 million budget includes an A$18 million contingency allowance, SO4 said.
Bulk earthworks have been completed at Lake Way, with the project remaining on target for sales in the first quarter of 2021.
Lake Way is forecast to produce 245,000 mt of SOP per annum and has a 20-year mine life. SO4 said it initially plans to produce two products: high potassium low-chloride standard powder SOP (grading >53 percent K2O) and fertigation grade high potassium low-chloride water soluble product, used in micro-irrigation.
Offtake commitments have been secured for over 90 percent of planned output for five and ten-year terms, including with Helm (GM Dec. 20, 2019) as well as with Unifert, Indagro, and Fertisur (GM Nov. 22, 2019).