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Another offtake agreement at Lake Wells

12th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Australian Potash has inked its fourth offtake agreement at its Lake Wells project, in Western Australia.

The company on Wednesday announced that it had signed a binding term sheet with partner HELM AG for the supply of 30 000 t/y of premium sulphate of potash (SoP) from the Lake Wells project.

The offtake agreement spans ten years, and pricing will be based on a net realised price basis, inentivising HELM to achieve the highest sales price in the market jurisdiction covered by the agreement.

“The agreement with Tier 1 international chemicals and fertilizer distributor HELM is a defining moment for Australian Potash and the K-Brite brand. Our Lake Wells product will be distributed into the lucrative and expanding European fertilizer market through HELM’s dominant brand and market leading position,” said Australian Potash MD and CEO Matt Shackelton.

“HELM’s clear strategic direction is to expand their value in brand across the world’s major fertilizer markets, and the marketing and distributorship of SoP forms an integral piece of their offering. It is enormously gratifying that Australian Potash’s K-Brite brand will be central to that programme on the European continent.”

With the HELM offtake agreement now secured, more than 85% of the projected output from Lake Wells is now under contracted sale.

The A$208-million Lake Wells SoP project could deliver 150 000 t/y of SoP, based on the maiden reserve of 3.6-million tonnes, and has a mine life of 30 years.

Edited by Creamer Media Reporter

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