Kalium Lakes Ltd (ASX:KLL) has completed the front-end engineering and design (FEED) work, which continues to build on previous work completed in the bankable feasibility study at the Beyondie Sulphate Of Potash (SOP) Project in WA.
Key FEED outcomes include a recovery improvement from 72% to 91% in the process plant and an increase in the potassium recovery from the flotation tails stream.
As a result of the improved recovery, production rates have increased by 10% to a 90,000 tonnes per annum SOP stage 1 facility, ramping up to 180,000-tonne SOP full-scale facility.
“One of the lowest cost producers in the world”
Kalium Lakes managing director Brett Hazelden said: “The completion of FEED work continues to confirm and improve on our bankable feasibility study released in September last year and incorporates feedback from independent reviewers as well as our material construction and operation contractors.
“The significant reduction in operational costs means that Kalium Lakes is likely to become one of the lowest cost producers in the world.
“Ensuring we can operate profitably throughout the normal commodity pricing cycles continues to be a low-key focus for the company.
“The opportunity to install and own the power station and gas pipeline infrastructure not only provides for significantly lower operating costs but also provides essential infrastructure for SOP production expansion and future magnesium by-product delivery.”
READ: Kalium Lakes receives $74 million loan package from NAIF for Beyondie SOP Project
Other highlights include an upgraded mine life in excess of 30 years (up to 50 years) and a decrease in life of mine operation costs to around US$178-207/tonne FOB AISC from the previously recorded US$226-263.
Pre-production capital costs now sit at $216 million and include additional NAIF funded infrastructure and a larger contingency of 15.6% to increase the certainty of delivery within budget.
Kalium Lakes is progressing towards completion of all financing tasks and a final investment decision in the second quarter of 2019.
The upcoming major milestones and an indicative timeline are: