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 sulphate of potash (SoP) 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 joint cooperation agreement with the operator and manager of the Geraldton port, in Western Australia, enabling the company to continue to optimise its logistics and port options for the LSoP project.

“The agreement is the first of a number of material development and operational agreements we will finalise during the front-end engineering design study,” MD and CEO Matt Shackleton has said.

The agreement provides for Australian Potash and Geraldton port to progress discussions on the export of SoP and the import of muriate of potash.

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

On Budget and on Time?
Too early to state.

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