Australian Potash has received backing from the board of the Environmental Protection Authority for its Lake Wells sulphate of potash fertiliser project, located 500 kilometres northeast of Kalgoorlie in the Eastern Goldfields.
Western Australia’s environmental watchdog this week made a recommendation to the Minister for the Environment for the full development of Lake Wells to proceed.
Australian Potash’s definitive feasibility study for the Lake Wells project shows a multi-generational 30-year mine life and production of 150,000 tonnes a year of premium grade sulphate of potash.
The company has already locked in over 75 per cent of its forecast lucrative sulphate of potash output under binding take or pay off-take agreements.
Our typically thorough approach to the Approvals Pathway is reflected in the very positive liaison we have enjoyed with the EPA over the past 2 years, and in the concise and effective list of conditions we will adhere to through development and production.
The company also said it has issued a tender package for the project’s plant engineering, procurement and construction.
With the financing due diligence process in full swing now, Australian Potash said it is looking towards indicative term sheets being on the table by the end of this year.
Remarkably, the Lake Wells project 30-year mine life only takes in about 21 per cent of the total measured mineral resource at the project right now.
The recommendation from the EPA cannot be overstated for Australian Potash who has been slogging away at its approvals for a long time now.
With an estimated project net present value of some A$665m, there is a lot at stake and the potential removal of the critical EPA approval hurdle represents a very significant shot in the arm for Australian Potash.
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