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 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 from 51% to 52% potassium oxide, with negligible chloride and minimal insoluble material.
Potential Job Creation
The Beyondie project will create up to 80 jobs during construction and employ about 50 full-time workers over the 30-year life of the mine. It will also result in important infrastructure being added to the regional community, with the construction of an airstrip, upgraded roads, improved communications and a 78 km gas pipeline.
Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from 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 definitive feasibility study (DFS) to A$216-million in the FEED.
Planned Start/End Date
The project was approved in October 2019. Commissioning and ramp-up to nameplate throughput is expected in 2020.
Latest Developments
Work at the BSoP has been accelerated after Kalium Lakes completed a A$48.8-million capital raise.
The various contractors will be mobilised in the coming weeks to undertake several work programmes, including the pond construction earthworks; an 80 km gas pipeline installation; purification plant engineering, procurement and construction work; construction of the residual workshop, village and administration facilities; and final equipping and pipeline connection of sunshine bores and trench networks.
Kalium Lakes recently raised A$48.8-million through the completion of a share placement and the institutional component of its entitlement offer at 15c a share.
With the institutional component of the raise completed and the retail entitlement component to close shortly, the company can now concentrate on accelerating construction and operations at the project.
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); Edgen Murray (manufacture and supply of the coated line pipe), Pipecraft (pipeline installation); and Primero (design, supply and construction of the inlet and delivery stations, as well as the pipeline).
Contact Details for Project Information
KLL, tel +61 8 9240 3200 or email info@kaliumlakes.com.au.