The total estimated output of 150,000tpa from the project is underpinned by offtake agreements
Lake Wells project has a 30-year mine life. (Credit: Khusen Rustamov from Pixabay)
Australian Potash has secured full environmental approval for the AUD208m ($158.5m) Lake Wells sulphate of potash project (LSOP) from the Western Australian government.
The company said that Western Australia Minister for Environment Stephen Dawson has conveyed to it the statement that a proposal could be implemented for the project.
According to Australian Potash, all decision-making authorities have been advised by the Minister that they can move ahead with issuing of the licenses and permits needed for commencing development.
The full environmental approval for the Lake Wells project follows recommendation for the same by the Western Australian Environmental Protection Authority (EPA) in September 2020.
Australian Potash managing director and CEO Matt Shackleton said: “Conditions agreed with the EPA and contained in the Statement allow APC to develop an environmentally sustainable Project with effectively no impact on social surrounds. Flora, fauna and water management plans proposed by the Company were all accepted by the EPA.
“The LSOP is now positioned with environmental approval to develop, and 100% of forecast output under binding take-or-pay agreements.”
Shackleton added that lenders to the Lake Wells project, which include the Northern Australia Infrastructure Facility, Export Finance Australia, and others, have either completed or on the verge of completing due diligence.
Last November, Australian Potash signed a binding 10-year take-or-pay term sheet with German chemicals marketing enterprise HELM for 20,000 tonnes per annum (tpa) of K-Brite sulphate of potash from the Lake Wells project for distribution into the US.
The Sulphate of Potash (SOP) developer said that 100% of the estimated output of 150,000tpa of the project is underpinned by offtake agreements.
The Lake Wells project, which has a 30-year mine life, is located nearly 500km northeast of Kalgoorlie, in the north-Eastern Goldfields.