Kalium Lakes Ltd (ASX:KLL) has received a $74 million loan package from the Northern Australia Infrastructure Facility (NAIF) to support the development of the Beyondie Sulphate of Potash (SOP) Project by providing long term debt facilities.
The NAIF facilities are subject to final documentation and conditions, including final approval from the Western Australian Government and conclusion of the responsible Federal Ministers’ consideration period.
One step closer to final investment decision
Kalium managing director Brett Hazleden said: “We are delighted to have the support of NAIF as we continue to develop this SOP project in Australia.
“Our team is very proud of the fact that NAIF recognises the public benefits of the Beyondie SOP Project including providing a domestic source of a fertiliser, which plays a significant role in improving agricultural yield and productivity, an indigenous engagement strategy and the creation of jobs in local communities.
“This positive investment decision by NAIF has been incorporated into the front-end engineering and design report and further confirms all the fundamentals for the Beyondie SOP Project stake up and takes us one step closer to a final investment decision by Kalium.”
$48 million infrastructure development facility
The companies have agreed to non-binding term sheets for the provision of a $48 million infrastructure development facility and up to $26 million for a project development facility.
The long tenor and concessional terms of the infrastructure development facility will allow Kalium to bring forward the construction of $29 million, 78-kilometre lateral gas pipeline to connect the Goldfields Gas Pipeline and an on-site gas-fuelled power station for Phase 1 of the project.
This will result in operating reductions of around $62-65 per tonne from the base case in the bankable feasibility study, which was released in September 2018.
The infrastructure development facility will also fund upgrades to the 78-kilometre unsealed road connecting the Beyondie SOP Project site to the great northern highway, new communication infrastructure, an airstrip and an accommodation village that can support in excess of 120 people.
- Jessica Cummins