PERTH (miningweekly.com) – The A$450-million Lake Disappointment brine and sulphate of potash (SoP) project, in the Pilbara, has been granted Major Project status by the federal government.
The project, being developed by ASX-listed Reward Minerals, will produce 400 000 t/y SoP for domestic and international markets over a 27-year mine life, and is expected to generate life-of-mine revenues of A$6-billion and earnings before interest, taxes, depreciation and amortization of A$2.5-billion.
Minister for Industry, Science and Technology Christian Porter said the Lake Disappointment project would support around 230 jobs during construction and a further 200 direct jobs during operations.
“The Lake Disappointment project will strengthen the security of Australia’s agriculture sector and support the government’s Ag2030 agenda to boost Australia’s agricultural production to A$100-billion a year by 2030,” Porter said.
“Not only will the project improve domestic and global supplies of potash fertiliser, it will also create hundreds of jobs during construction and into the broader supply chain once completed.
“Awarding Major Project status recognises the importance of the project to Australia’s economy and exports, and will help the project deal with government approvals.”
Minister for Resources, Water and Northern Australia Keith Pitt said the project will also support the government’s northern Australia agenda to generate economic growth and new job opportunities across the north.
“The Lake Disappointment project has an initial life of 25 years and will help Australian farmers access the fertiliser they need to improve production and grow food for both Australia and for export,” Pitt said.
“Importantly, the project will create new opportunities to export potash, and is in an ideal location to supply growing markets in Southeast Asia, India and potentially East Africa.
"The project will also provide employment opportunities and royalties to the Martu Traditional Owners.”
Reward Minerals CEO Greg Cochran has welcomed the Major Project status, saying it was an important milestone for the SoP project, coming at a time when the company was actively seeking a strategic partner.
“We are proud to join the select group of projects with this recognition, and wish to thank the Agency for its thorough and professional approach throughout the assessment process.”
Major Project status helps companies access extra support, coordination, and information services from the Major Projects Facilitation Agency which acts as a single entry point into the Australian government regulatory approvals pathway.