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

Location
North-eastern Goldfields, Australia.

Project Owner/s
Australian Potash.

Project Description
An optimisation study completed in 2022, has increased average SoP production from 170 000 t/y in the 2021 front-end engineering design (FEED) to 205 000 t/y.

The optimised life-of-mine (LoM) production plan recovers 5.1-million tonnes of SoP, or 2.3-million tonnes of potassium, from the total measured mineral resource of 18.1-million tonnes of SoP.

The borefield development has been optimised, reducing the number of production wells required in steady-state operations from 172 wells over the LoM to 89.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The April 2021 FEED estimated a pretax net present value (NPV), at an 8% discount rate, of A$614-million and an internal rate of return (IRR) of 21%, with a payback of 4.5 years.

In the optimisation study the NPV has increased to A$1.01-billion and the IRR to 22% respectively. Payback has decreased slightly to 4.3 years.

Capital Expenditure
Capital expenditure has increased from A$292-million in the FEED to A$408-million.

Planned Start/End Date
First production from the LSoP is scheduled for 24 to 27 months from a final investment decision.

Latest Developments
Australian Potash is finalising predevelopment plans for the start of construction.

Key Contracts, Suppliers and Consultants
AQ2 (hydrogeological model for the LSoP).

Contact Details for Project Information
Australian Potash, tel +61 8 9322 1003 or email admin@australianpotash.com.au.