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PERTH (miningweekly.com) – The federal government has granted major project status to two Western Australian projects, which would jointly create more than 700 jobs in the Pilbara.
Both the Byondie sulphate of potash (SOP) project, being developed by ASX-listed Kalium Lakes, and ASX-listed Australian Vanadium’s namesake project have been granted major project status.
Minister for Industry, Science and Technology Karen Andrews said the Morrison government is committed to supporting projects that will boost the mining and agricultural industries and create jobs for Western Australians.
“Our government sees the incredible economic potential these projects offer, not just for the regional areas where they’re located but for Australia more broadly,” Andrews said.
“These products are rare and in high demand, and these projects will generate millions for our economy, create jobs in regional areas and bring important permanent infrastructure investment.”
The A$250-million Beyondie project will produce 150 000 t/y SoP, with the option to incrementally phase the project through a ramp-up from 75 000 t/y to 150 000 t/y to minimise operational and financial risks.
Production at Beyondie is expected to start in the fourth quarter of 2020, with all approvals already in place.
The Beyondie project will create up to 80 jobs during construction and employ around 50 full-time workers over the 30 year life of the mine, and will bring important infrastructure to the regional community, with the construction of an airstrip, upgraded roads, improved communications and a 78 km gas pipeline.
Kalium Lakes MD Brett Hazelden on Friday said that receiving major project status emphasized the importance of the project to the Australian agricultural industry.
“Currently there is no production of SOP in Australia, with all of this nation’s requirements met by product imported from the northern hemisphere. The development of the Beyondie SOP project will greatly enhance the ongoing security of potash supply for Australian farmers.
Meanwhile, federal Minister for Resources and Northern Australia Matt Canavan said the Australian Vanadium project aligned with the government’s strategy to position Australia as a critical minerals powerhouse
“Vanadium is on the critical minerals list for Australia and the US, which means there is a market there for this globally significant resource,” Canavan said.
“This project will have a significant impact on the Western Australian economy, especially the Meekatharra region with the creation of around 400 direct construction jobs and a further 200 ongoing jobs.
The Australian Vanadium project us one of the highest-grade vanadium projects being developed with a 183.6-million tonne resource, grading 0.76% vanadium pentoxide.
A prefeasibility study has estimated that the $354-million project could produce some 22.5-million pounds of vanadium pentoxide a year, over an initial mine life of 17 years.
First production from the project has been targeted for 2022.
Australian Vanadium MD Vincent Algar on Friday said that the formal recognition of the importance of the company’s project to Australia demonstrated support, and gave overseas investors comfort when considering investment in the project.
“We are delighted to join the select group of projects awarded major project status,” Algar said.
The major project status provides coordination and facilitation support, as well as a single entry point to a coordinated approvals process.