Salt Lake commissions potash plant

Salt Lake Potash is set to emerge as Australia’s first sulphate of potash (SOP) producer, having begun commissioning of its Lake Way processing plant near Wiluna.

The project is one of 11 lakes owned by the Perth-based company, with production and sales scheduled for the June quarter.

Salt Lake said front-end plant commissioning was powered by two-megawatt diesel generators, which would continue to be used throughout commissioning activities over the coming weeks.

Chief executive Tony Swiericzuk said commissioning the Lake Way plant was a major milestone for the company.

“It is exciting to see the vision that was first conceived in late 2018 come to fruition less than two-and-a-half years later,” he said.

“First SOP sales and revenue are now well within sight.”

Salt Lake's $264 million project is expected to deliver 245,000 tonnes of SOP per annum throughout its 20-year operating life.

The company has several offtake agreements in place, including with Swiss chemical fertiliser business Indagro, Hamburg-based HELM, and Japan’s Mitsui & Co.

Shares in Salt Lake were up 3 per cent to trade at 51 cents.

Fellow SOP developer Kalium Lakes is also expected to begin production this year, from its $248 million Beyondie project in the Pilbara.

Production is likely for the third quarter of 2021, Kalium says, with the project expected to deliver 90,000tpa over a 30-year mine life.