PERTH (miningweekly.com) – ASX-listed Kalium Lakes has received environmental approval for its Beyondie sulphate of potash (SoP) project, in Western Australia.
The environmental approval covers the Stage 1 area of the Beyondie project, which is based on the base case production of 164 000 t/y of SoP over a mine life of 30 years.
A previous bankable feasibility study (BFS) estimated that the base case production scenario would require a preproduction capital investment of A$159-million for an initial 82 000 t/y operation, with a further A$125-million required to increase production to 164 000 t/y.
“Kalium Lakes continues to lead the way as the first SoP project in Australia to obtain Ministerial approval under the Environment Protection and Biodiversity Conservation Act,” said Kalium MD Brett Hazelden.
“As an important regulatory approval this decision, together with the anticipated further final approvals due in the coming months, reinforces the key elements of the comprehensive BFS completed during September last year, associated with Beyondie’s 30 to 50 year mine life.”
The base case production scenario is estimated to have a pre-tax net present value of A$575-million and an internal rate of return, with average earnings before interest, taxes, depreciation and amortization estimated at A$116-million a year.