Name of the Project
Lake Wells sulphate of potash (LSoP) project.

Location
The project is located 160 km north-east of the Eastern Goldfields of Laverton, in Western Australia.

Project Owner/s
Australian Potash.

Project Description
The results of a definitive feasibility study (DFS) have proposed developing the LSoP into a 150 000 t/y operation.

The project will be developed as a solar salt operation, comprising brine abstraction, brine evaporation and salt processing.

The LSoP will be developed using a borefield network to abstract the brine contained within a section of the estimated 125 km palaeochannel, mitigating the geotechnical challenges and decline in grade and production over time, evident in trenching systems.

A 30-year life-of-mine (LoM) is estimated, with LoM production estimated at 4.5-million tonnes of premium high-grade SoP, based on the Joint Ore Reserves Committee-complaint measured resource estimate of 18.1-million tonnes drainable SoP.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$665-million and an internal rate of return of 25%.

Capital Expenditure
Development capital expenditure is estimated at A$208-million.

Planned Start/End Date
The project is expected to take 24 months to complete after the final investment decision.

Latest Developments
Australian Potash has signed a second binding term sheet with Migao International to supply 50 000 t/y of SoP from the Lake Wells project.

The offtake agreement will span an initial ten-year term, and will include K-Brite (SoP) sales and distribution rights on an exclusive basis to China.

Australian Potash MD and CEO Matt Shackelton has said that the company is pleased with the second binding term sheet, which will cover the sales and distribution of K-Brite into the world’s largest SoP market.

“Notwithstanding restrictions on movement, owing to the Covid pandemic, Australian Potash continues with its corporate activities, including progressing the offtake programme. Our strategic intention remains to secure the majority of the SoP under offtake, with 70 000 t, or about 45% of the targeted output of 150 000 t/y, now agreed to.”

Key Contracts and Suppliers
Lycopodium, together with Novopro Projects, AQ2, Knight Piésold, Argus Media Group and MBS Environmental (DFS).

Contact Details for Project Information
Australian Potash, tel +61 8 9322 1003.