- German fertiliser producer and distributor K+S commits to purchase up to 90,000tpa of SOP production from Kalium Lakes
- 10 Year binding agreement underscores initial revenue estimated to be ~A$650M
- K+S, with a market capitalisation of more than €3 billion and Potash revenues of
approximately €1.9 billion per annum is one of the world’s largest SOP producers
- Australia’s first Sulphate of Potash production on schedule to begin in 2020
Kalium Lakes Limited (Kalium Lakes) (ASX: KLL) is delighted to announce the latest in a series of global associations by entering into a Binding Offtake Agreement with K+S, with respect to Sulphate of Potash (SOP) production from its Beyondie Sulphate of Potash Project (Beyondie Project) in the East Pilbara region of
Kalium Lakes Managing Director, Brett Hazelden, commented: “We are extremely pleased to have reached agreement with one of the world’s pre-eminent SOP producers and distributors. It further strengthens our desire to be the first commercial SOP production facility in Australia, supplying Australian and overseas
farmers with a locally produced premium fertiliser.
“As a major and long-term partner, K+S offers unparalleled access to extensive expertise in design, construction and operation of SOP facilities, which will assist Kalium Lakes during the critical Commissioning and Production ramp up phase of the project. “With our recent funding announcements and now this binding offtake deal, we can now confidently focus on finalising our important Final Investment Decision targeting the second quarter of 2019,” Mr Hazelden said.
Binding Offtake Agreement – Key Elements
The Agreement includes the following key elements:
- An initial 10-year term to provide K+S with 90,000tpa of SOP products representing 100% of the anticipated production from Phase 1 of the Beyondie Sulphate of Potash Project.
- Pricing is linked to the sales price realised by K+S, which will also receive a marketing fee for selling and distributing the SOP product.
- K+S offers Kalium Lakes unparalleled expertise and technical support in relation to design, construction and commissioning.
With the Binding Offtake now finalised with K+S, Kalium Lakes is well progressed towards completion of all financing tasks and a Final Investment Decision in the second quarter of 2019.
About Kalium Lakes (ASX: KLL)
Kalium Lakes Limited is an exploration and development company, focused on developing the Beyondie Sulphate Of Potash Project in Western Australia with the aim of producing Sulphate of Potash (SOP), a high yield, premium fertiliser, for both domestic and international markets. There is currently no SOP production in Australia.