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.