Construciton work has commenced on Kalium Lakes Limited’s (ASX:KLL) fully owned gas pipeline at the Beyondie Sulphate of Potash Project (BSOPP) in Western Australia.
Managing Director, Brett Hazelden, said the scope of the gas pipeline lateral includes: an inlet station from the Goldfields Gas Pipeline (GGP) which will receive gas from a metering facility near the Kumarina Roadhouse; 79.4 kilometre of 100mm gas main line; and a delivery station (which will provide the gas at controlled temperature and pressure) for both power generation and use within the SOP production facility.
The main line works are anticipated to take five months to install, which will see works complete in December 2020. Construction works for the inlet and delivery stations will be finalised after the completion of the main line.
Mr Hazelden said that currently, 20.1 km of the pipeline path has been cleared and graded, 15.8 km of pipe has been delivered and two kilometres of pipe has been placed along the roadside reserve.
The construction of the gas pipeline has been enabled through debt funding received from the Northern Australia Infrastructure Facility (NAIF).
The gas pipeline is a key enabler for the Company to benefit from low ongoing operating costs which places Kalium Lakes in the lowest quartile cost of SOP production in the world,” Mr Hazelden said.
“The pipeline has also been sized to allow increased production from Stage 2 and potential Magnesium by-products. This valuable piece of infrastructure provides a significant long-term advantage to the BSOPP, which currently has a 30 to 50-year mine life,” he said.