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Kalium Lakes concludes Sulphate of Potash offtake agreement with global producer

German fertiliser producer and distributor K+S commits to purchase up to 90,000 tonnes per annum of SOP production.
A healthy crop
The 10-year agreement underscores initial revenue estimated to be about $650 million

Kalium Lakes Ltd (ASX:KLL) has signed a binding offtake agreement with K+S to supply Sulphate of Potash (SOP) from the Beyondie project in the east Pilbara region of WA.

With the agreement finalised, the company is well progressed towards completing all financing tasks and making a final investment decision in the June quarter of 2019.

“Agreement with one of the world’s pre-eminent SOP producers”

Kalium Lakes managing director Brett Hazelden said: “We are extremely pleased to have reached agreement with one of the world’s pre-eminent SOP producers and distributors.

“It further strengthens our desire to be the first commercial SOP production facility in Australia, supplying Australian and overseas farmers with a locally produced premium fertiliser.

“As a major and long-term partner, K+S offers unparalleled access to extensive expertise in design, construction and operation of SOP facilities, which will assist Kalium Lakes during the critical commissioning and production ramp-up phase of the project.”

Key elements of agreement

The agreement includes:

  • An initial 10-year term to provide K+S with 90,000 tonnes per annum of SOP products, representing 100% of the anticipated production from phase I of the Beyondie Sulphate of Potash Project;
  • Pricing is linked to the sales price realised by K+S, which will also receive a marketing fee for selling and distributing the SOP product; and
  • K+S offers Kalium Lakes unparalleled expertise and technical support in relation to design, construction and commissioning.
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Kalium Lakes Ltd Timeline

Newswire
May 15 2017

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