PERTH (miningweekly.com) – Potash developer Kalium Lakes is targeting first commercial sales from its Beyondie sulphate of potash (SoP) project, in Western Australia, for July this year.
“We are very pleased that through recent equipment testing and the production of SoP we have been able to validate the overall process chemistry and plant design. We are now focussed on systematically addressing the remaining bottlenecks in the plant and progressively increasing production,” said Kalium Lakes CEO Len Jubber on Tuesday.
“Plant operations during 2022 will be variable, taking into account our need to conduct further mechanical debottlenecking activities and build kainite-type mixed salts (KTMS) inventory.”
The availability of sufficient KTMS to feed the plant is currently a production constraint, however, with the improved pond operating procedures, expectations are that sufficient KTMS will be available by end of August to commence the ramp-up in production.
Until then Kalium Lakes plans to produce SoP at lower rates, including undertaking further optimisation works during a plant shutdown in August, including the installation of a heat exchanger to allow improved operation during hot summer weather, the company told shareholders.
Production will restart in September, with progressive SoP output ramp-up through to nameplate performance tests planned at the end of the fourth quarter of 2022.
Beyondie is expected to be operating at an 80 000 t/y SoP production run rate by the first quarter of 2023, with the targeted 120 000 t/y run rate established by the third quarter of 2024.
“Kalium Lakes is the first SoP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SoP price environment. We believe the company has an exciting future and we would like to thank all stakeholders, including shareholders, for their patience,” said Jubber.
Meanwhile, Kalium Lakes has flagged the need for further funding requirements by the third quarter of this year, given the revised production ramp-up schedule at Beyondie.
The ASX-listed company had A$27.5-million cash and A$175-million of drawn senior debt facilities with the Northern Australian Infrastructure Fund.
The company noted that discussions with financiers in connection with the revised production ramp-up schedule and funding requirements are advancing well, and Kalium Lakes was expected to inform the market of the quantum of funding required by the end of June.
Meanwhile, discussions are also advancing with key offtake partner K+S with respect to rescheduling of planned SoP deliveries through the course of 2022.