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 been granted environmental protection authority (EPA) approval for its Lake Wells potash project.

The company is continuing discussions in the offtake programme, with more than 75% of its forecast output already contracted under binding take-or-pay agreements. The plant engineering, procurement and construction (EPC) tender package has been issued and Australian Potash is reviewing EPC bids received for several other packages.

“The formal debt due diligence process has commenced, with domestic and international financing institutions now in the data room,” MD and CEO Matt Shackelton has noted.

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.