Kalium's sulphate project to cost $220m

A pre-feasibility study on Kalium Lakes’ Beyondie sulphate of potash project in the Pilbara has detailed a $220 million capex to bring the asset into production.

Perth-based Kalium released the PFS to the market this morning, which detailed a base case of 150,000 tonnes per annum of sulphate of potash (SOP) and an initial mine life of 21 years, at an operating cost of between $244 and $253 per tonne of SOP.

The study foreshadowed a $220 million capex, which included construction of a 78 kilometre gas pipeline.

Kalium, which listed on the ASX in December after completing a $6 million initial public offering, will now move to begin work on a bankable feasibility study.

“The project, hosting Australia’s highest grade potash brine resource, has the potential to be a low cost, long life and high margin producer based on the industry’s lowest assumed forward looking SOP price among current project developers,” Kalium managing director Brett Hazelden said.

“Further possible project growth is also available through either extended mine life or increased production from the wider tenement area, as well as the potential incorporation of magnesium products for which pilot scale trials will be undertaken during the coming months.

“The company has already commenced the critical path activities associated with the BFS, most notably being the pilot scale evaporation ponds and purification works.”

Shares in Kalium were unchanged at 43 cents each at 11am.