PERTH (miningweekly.com) – ASX-listed Salt Lake Potash has signed a memorandum of understanding (MoU) with Mitsubishi for the sale and offtake rights of up to 50% of the sulphate of potash (SOP) to be produced from the demonstration plant at the Goldfields Salt Lakes project, in Western Australia.
The SOP will be distributed into Asia and Oceana, and potentially into other markets.
Salt Lake is progressing a development strategy for the demonstration plant, which will initially involve the construction of a demonstration plant producing 50 000 t/y of high-quality SOP, with plans to distribute production through a small number of global distribution partnerships.
The MoU with Mitsubishi is nonbinding, and sets out the key terms for a formal offtake agreement, including quantities, target markets, delivery parameters, market pricing and commission mechanisms.
“Our model of distribution partnerships is vital for what is essentially an export project,” said Salt Lake CEO Matt Syme.
“Mitsubishi’s global pre-eminence in commodities trading and finance and longstanding involvement in Australian industry, give us great confidence that we can build a very cohesive and beneficial partnership over time. Their interest is a strong endorsement of the market outlook for SOP and also of our plans to supply these markets.”
Syme said that Salt Lake was anticipating one or two more potential distribution agreements.