Kalium awards $60m of Beyondie contracts

Kalium Lakes has awarded four contracts related to purification plant facilities for its Beyondie sulphate of potash project, with DRA and FIRM Construction among the winners.

In a statement, Kalium said the contracts, which total more than $60 million, cover the engineering, procurement, construction management and commissioning associated with the development of the purification plant.

DRA, a global engineering firm headquartered in Perth, secured the engineering, procurement, and construction management contract for the overall project delivery.

Subiaco-based FIRM Construction will provide work health and safety plans and management across the Beyondie project.

A joint venture between German companies K-UTEC and Ebner was awarded the engineering and procurement contract for purification plant design, plus supervision and commissioning services.

Koeppern Machinery, another Germany-based business, was awarded compaction plant works for production of granular sulphate of potash.

Kalium said the contracts allowed for the start of early works, with the full scope subject to a final investment decision expected before the end of June.

It said all the contracts awarded were within the budget outlined in the bankable feasibility study and front-end engineering and design.

“The contracts confirm the 15-month construction schedule post a FID, followed by a commissioning and ramp up period,” Kalium said.

Kalium Lakes chief development officer Rudolph van Niekerk said the company spent a significant amount of time and effort ensuring it selected the right partners.

“Companies with SOP specific experience and capabilities are hard to find, especially when looking for those that have taken projects from design into execution, then on to production,” he said.

“After years of investigation and months of negotiation, we have compiled a contracting strategy that brings a bankable solution, as well as achieving the next significant milestone to take us into the development stage of the project.”

Beyondie has a capex of $216 million and first production is slated for next year.

Shares in Kalium were flat at 61 cents each at the close of trade.