PERTH (miningweekly.com) – ASX-listed Australian Potash has inked a second binding term sheet with Migao International to supply 50 000 t/y of premium sulphate of potash (SoP) from its Lake Wells project, in Western Australia.
The offtake agreement will span an initial ten-year term, and would include K-Brite (SoP) sales and distribution rights on an exclusive basis to China.
Australian Potash MD and CEO Matt Shackelton said that the company was pleased with the second binding term sheet that would cover the sales and distribution of K-Brite into the world’s largest SoP market.
“From their position as one of China’s largest Mannheim SoP producers, Migao is ideally positioned to distribute the K-Brite into their long-term supply chain relationships in China.
“Notwithstanding restrictions on movement due 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 now 70 000 t, or approximately 45% of the targeted output of 150 000 t/y, agreed to.”
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 would have a mine life of 30 years.