PERTH (miningweekly.com) – The Environmental Protection Authority (EPA) has recommended the environmental approval of the Lake Disappointment potash project, in Western Australia, being developed by ASX-listed Reward Minerals.

Lake Disappointment, located 320 km east of Newman, would produce 400 000 t/y of sulfate of potash (SoP) for domestic and international markets, over a 27-year mine life.

Brine will be collected from a network of shallow trenches across the lake and then pumped into shallow evaporation ponds to concentrate the brine by evaporation and crystallise out approximately 18-million tonnes a year of solid waste salts (halite) and 2.9-million tonnes a year of crude potash salts.

The project is expected to require a capital investment of A$451-million, and is expected to generate life-of-mine revenues of A$6-billion and earnings before interest, taxes, depreciation and amortization of A$2.5-billion.

“In recent years, a number of SoP proposals have been referred to the EPA for assessment and while there are similarities across the projects, each proposal will be considered and assessed on its merits and unique environmental impacts,” EPA chairperson Dr Tom Hatton on Tuesday said.

“During our consideration of Reward Minerals’ Lake Disappointment proposal, the EPA carefully looked at environmental impacts, particularly on the night parrot, given its conservation status, and breeding water birds, given the importance of Lake Disappointment as a breeding site.

“As a precautionary measure the EPA has recommended management plans to avoid and minimise any impacts to native animals and vegetation.”

Reward CEO Greg Cochran on Tuesday said that the EPA approval was a great outcome for the company and its stakeholders.

“To become only the second SoP project to achieve this recommendation after such a level of intense scrutiny is testimony to the quality of work that has been done in preparing the project submission,” Cochran said.

“We are looking forward to a final decision by the Environment Minister once he has had the opportunity to consult with the state’s other decision-making authorities,” he added.

In April, the EPA recommended Western Australia’s first potash proposal, in the form of ASX-listed Kalium Lakes’ Beyondie SoP project, for approval and currently has two other SoP proposals under assessment; the Lake Wells potash project and the Mackay SoP project.

The Lake Way SoP proposal has also been referred to the EPA for assessment, but a determination on whether to assess it has not yet been made.