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Weej55
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Still a hard one to get across the line... maybe some NAIF money helps. And German.

Pilbara resources junior Kalium Lakes appears to have jumped to the front of the queue in the race to build Australiaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s first potash project with a $74 million federal government grant to help speed up development.

 

The miner will be given the cash under the Northern Australia Infrastructure Facility program and the funds will be used for the construction of a 78km gas pipeline and a gas-fired power station.

 

Under the terms of the deal, $48m is to be used for infrastructure development and $26m on project development. The pipeline will cost about $29m and some of the funds will be used to build an airstrip as well as upgrading an unsealed road from the Great Northern Highway to the project site.

 

Kalium Lakes has been working on the Beyondie project for the past few years and the fresh funding will help the site become the first potash producer in Australia.

 

The Australian Potash Company, Salt Lake Potash, Reward Minerals and Agrimin are also working to develop projects in Western Australia.

 

Beyondie is expected to cost about $200m to get up to production with about $160m to be spent on a processing plant and ponds and the rest on the pipeline and power station.

 

Taking into account the $74m from the government, Kalium Lakesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ remaining funding task will be about $120m.

 

The company, along with its advisers from BurnVoir Corporate Finance, are in Europe meeting with potential debt investors ahead of a transaction in the next few weeks.

 

The remaining funding will be 65 per cent debt, mainly from international investors, and 35 per cent equity from capital-raising. Beyondieâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s final investment decision is due to be made in the middle of the year and the project is expected to start late next year.

 

The initial potash production is forecast to be about 80,000 tonnes and a phase one offtake agreement has been agreed with K+S, the German fertiliser and salt supplier. The first yearâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s amount is thought to be enough to meet the Australian demand for potash each year.

 

The German company will process the potash into fertiliser that will be sold in Australia.

https://beta.theaustralian.com.au/business/...bc54a0a17fdfe79
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  • 2 years later...

A new dawn for Australia's potash pioneers

 

Australia's first sulphate of potash mine will start production this week and five local mines could be producing the specialty fertiliser inside four years.

 

His biggest customers are in Russia, Mexico, Peru and Belgium, but Tony Swiericzuk hopes local farmers knock on the door when Australia's nascent potash industry comes to life this week.We are happy for farmer Joe to turn up to the mine gate with his truck or trailer and take a load, he says of the crop nutrients he is now extracting from Western Australia's outback salt lakes.

 

A new export industry will be born on Monday when Swiericzuk's company Salt Lake Potash declares first production and claims pioneer status ahead of the flock of rivals building sulphate of potash (SOP) mines on Australia's ephemeral lakes.

 

If all of them deliver to schedule, Australia will go from zero to five SOP mines in the next four years.

 

They hope to snatch a piece of a small but growing industry that is now worth just over $US4 billion ($5.2 billion) a year globally and is distinct from the $US20 billion plus muriate of potash (MOP) industry that BHP is likely to enter this year when it is expected to build a new $US5.7 billion Canadian mine.

 

Though SOP is the small end of the potash industry, it is also the premium end with farmers typically paying 50 per cent to 100 per cent more for SOP, which is ideal for fertilising crops such as berries, nuts and citrus.

 

Salt Lake Potash enters production after a six-month period of rising prices for many agricultural commodities and Swiericzuk is convinced that from a small industry today, big things will grow.

 

SOP is produced at WA's remote Lake Way when briny water is extracted from 85 metres below the salt pan and is allowed to interact with the potassium-rich surface of the lake.

 

Stored in giant evaporation ponds for weeks at a time, the sun does much of the work and a final processing stage spits out a product that Swiericzuk says is ready to "throw on your tomatoes".

 

Close to 90 per cent of the SOP that Swiericzuk's team produces will be shipped to foreign customers via Fremantle or Geraldton ports, but the company will hold back about 21,000 tonnes a year in a bid to forge direct relationships with local farmers.

 

We have purposefully retained the [marketing] rights to Australia, he says. All around the world we have given [distribution] exclusivity to different offtake partners, but Australia we have kept for ourselves so we can look after the domestic farmers in a way that we see fit.

 

Being first to market is always a good thing in the commodities game, but Swiericzuk hopes other ASX listed aspirants such as Kalium Lakes, Agrimin, Australian Potash and BCI Minerals can also enter the SOP market and build a strong local industry in the decade ahead.

 

I think it is terrible to be an orphan, he says. You want to have multiple companies that analysts can follow and investors can compare against each other. This is a new industry that is going to put WA on the fertiliser map.

 

If the wave of new, local SOP mines do make it into production, Swiericzuk is confident they won't trigger the sort of supply surge that crushed lithium prices after six new WA mines started exporting the battery mineral in 2017 and 2018.

 

He says new SOP supply from WA will arrive more gradually than was the case in lithium and that the demand for food, which is the ultimate driver of fertiliser demand, is far less discretionary than the digital devices and electric cars that consume lithium.

 

Janus Henderson investors said earlier this year that they expected global demand for SOP will grow faster than the global economy, creating room for new entrants.

 

Advisory firm BDO reported in March that only the ASX-listed gold sector attracted more financial support in 2020 than ASX-listed SOP aspirants, with local investors pumping more than $528 million into the unproven industry.

 

The data also suggests that both debt and equity capital markets are bullish towards the sector and recognise the industry's potential for growth.

 

Swiericzuk admits that Salt Lake Potash tapped shareholders for funds more frequently than he had hoped as the company set about building the Lake Way project.

 

Having been a key member of the Fortescue Metals team that borrowed heavily a decade ago to build the world's fourth biggest iron ore business, he had been keen to adopt a similar, debt-fuelled model that would avoid diluting shareholders.

 

But with SOP a largely unknown commodity in Australian lending circles, debt tended to come with requests for matching equity contributions.

 

It is a new industry for this country and that brings with it an element of caution ; that is what has caught us going forward and for us to access the debt we have had to balance that risk, Swiericzuk says.

 

The Australian government's Clean Energy Finance Corporation lent $US39 million to the project.

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  • 1 month later...

there is a Sharecafe article about SoP

 

Sulphate of Potash: A Revolution in Farming, Food and Fertiliser

 

ttps://www.sharecafe.com.au/2021/07/07/sulphate-of-potash-a-revolution-in-farming-food-and-fertiliser/

 

and it is mainly an interview with the recently listed Trigg (TMG) CEO. A very effective communicator.

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  • 3 months later...

DNK has supplied this update; it would likely apply for most projects

 

 

Danakali receives updated Sulphate of Potash Price Forecast Analysis from CRU

 

 

 

 

Highlights

• Muriate of Potash (MOP) prices surged higher across multiple global markets from January 2021

• Medium term Sulphate of Potash (SOP) price is forecast to increase and long-term outlook predicts SOP prices increasing further

• Colluli FEED sensitivity analysis indicates that for every 10% increase in SOP price Colluli Project NPV increases by US$250M

• Colluli is fully permitted, all studies complete, process flow design finalised and derisked

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Danakali is one wolvie's old favourites. Wolvie was never the most talkative chap and used to get the sh!ts with posters, including me, having a whinge for the lack of progress Danakali was making at their gun Colluili prospect in Eritrea. Fantastic project but the continued lack of progress has become its defining feature. Someone early on gave me the tip about Kalium Lakes Ltd but I was aware that a number of potash projects were similarly to Danakali just spinning their wheels and decided Kalium Lakes was more of the same but was the very start of the hard slog towards production. I recently saw that Kalium Lakes seems to be well on the way to production ... another one I didn't get right....
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Spinning the wheels; probably better than going off half cocked, like SO4. which may be salvaged but it could be a close run thing. Or a morsel for vulture fund

 

I took a nibble with TMG but the timeline is either caution personified (2028 production mebbe) or skinny and wishful. I bailed at a loss recently.

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