PERTH (miningweekly.com) – Potash developer Lake Way Potash has inked three binding term sheets for sulphate of potash (SoP) offtake from its Lake Way project, in Western Australia.
The ASX-listed company on Monday said that a total of 170 000 t/y of volume had been committed to three leading fertilizer distributors over five years, representing 70% of the planned production from Lake Way.
First SoP shipments are expected to take place in 2021, with take-or-pay arrangements on the product resale.
“We are delighted to have finalised these offtake for the sale and distribution of premium SoP product that will be produced at our Lake Way project,” said Salt Lake CEO Tony Swiericzuk.
“Binding agreements with industry leaders Unifert, Indagro and Fertisur support Salt Lake’s marketing strategy of targeting geographical markets with strong growth in crops that benefit most from SoP fertilisers. Salt Lake continues to progress discussions with other leading fertilizer companies for the sale of our remaining SoP production.”
A recently completed bankable feasibility study into the Lake Way project estimated that it would require a capital investment of A$254-million to produce 245 000 t/y of SoP over a mine life of 20 years, based on the high grade probable ore reserve of 5.4-million tonnes SoP.