Australian Potash Limited (ASX: APC) has signed a Joint Cooperation Agreement with the operator and manager of the Port of Geraldton in the Mid-West of Western Australia.
The Geraldton Port will be a critical hub in the development of Australian Potash’s Lake Wells Sulphate of Potash Project.
The Lake Wells Definitive Feasibility Study identified road haul pf product to and from Geraldton Port as key infrastructure.
“This Agreement allows APC to further optimise the logistics and port options for the Project, and is the first of a number of material development and operational agreements we will finalise during the Front End Engineering Design (FEED) Study,” Managing Director and CEO, Matt Shackleton.
The new agreement provides for Geraldton Port and APC to progress discussions on the export of Sulphate of Potash and import of Muriate of Potash through the facility.
Australian Potash holds a 100% interest in the Lake Wells Sulphate of Potash Project, located approximately 500 km northeast of Kalgoorlie.
Following the release of the DFS in August 2019, APC is focused on the six month FEED Study, finalising offtake discussions and securing financing to develop the LSOP.
Mr Shackleton said the DFS was underpinned by extensive and rigorous testwork, data, and modelling. The DFS confirmed that the LSOP will be a long life, low capital and high margin SOP producer.
Key outcomes from the DFS included:
- 30 year mine life producing 150,000tpa of premium grade SOP
- Long mine life underpinned by 3.6Mt reserve and 18.1Mt Measured Resource estimate
- Pre-tax NPV of A$665m and an IRR of 25%
Development capex of $208 million with sector leading capital intensity of A=$1,387 per tonne.