Kalium flags $284m capex for Beyondie

Kalium Lakes has released a bankable feasibility study for its Beyondie sulphate of potash (SOP) project in the Pilbara, which the company says has compelling technical and economic outcomes.

The study detailed a base case of 164,000 tonnes per annum of SOP with an initial mine life of 30 years.

After taking into consideration operational, SOP market and financing risk management perspectives, the company has confirmed a phased ramp-up development scenario, starting with a commercial demonstration scale 82,000tpa SOP operation, before ramping up to a 164ktpa full scale SOP production facility.

The capital cost of the initial stage will be $159 million, with a deferred capital cost of $125 million to ramp-up production to 164,000tpa. 

The company has forecast an operating cash cost of $231 per tonne of SOP and is anticipating production to begin in 2020.

The study also details an option to install a gas pipeline at a capital cost of $29 million, which would result in an operating costs reduction of between $31 and 34 per tonne.

“The bankable feasibility study and ore reserve present a set of compelling technical and economic outcomes, to both investors and financial institutions,” managing director Brett Hazelden said.

“The project has been designed to be a low cost, long life and high margin producer.

“Kalium Lakes is proud to be the first SOP developer to complete a bankable feasibility study, for an Australian deposit which allows for an initial mine life of between 30 to 50 years.”

The company had previously forecast a capex of $220 million with a capacity of 150,000tpa in a pre-feasibility study released last year.

Kalium said last week that it was in discussions with the federal government’s Northern Australia Infrastructure Facility to help fund the project.

Meanwhile, Salt Lake Potash and Australian Potash entered into a memorandum of understanding last week to study the potential benefits of sharing infrastructure and other costs at Lake Wells.

Shares in Kalium finished up 5.62 per cent at 47 cents each today.