Salt Lake on track for Q1 production

Emerging producer Salt Lake Potash has secured new backing for its Lake Way project near Wiluna, as part of a $US138 million syndicated debt facility.

Commonwealth Bank of Australia, along with a private equity fund managed by Sequoia Financial Group, have agreed to invest $US39 million and $US25 million, respectively, towards the Lake Way sulphate of potash (SOP) project, which is on track for commissioning in the current quarter.

Other investment will come from Taurus Mining Finance and the federal government’s Clean Energy Finance Corporation, as announced in August last year.

Following the syndication, the Taurus investment will be reduced to $US35 million (from $US91 million) and CFEC to $US39 million (from $US47 million).

Salt Lake chief executive Tony Swiericzuk said he was pleased to welcome the new investors.

“The breadth and quality of investors that have been attracted to this facility is testament to the robust financial characteristics and positive environmental credentials of the project and its proficient execution by the [Salt Lake] team,” Mr Swiericzuk said.

“We look forward to continuing our relationship with Sequoia and CBA as we pursue our vision of a multi-lake SOP province in Western Australia.”

Salt Lake will emerge as Australia’s first SOP producer, with the $264 million Lake Way project expected to deliver 245,000 tonnes per annum throughout its 20-year mine life.

First sales are expected before June 30.

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

Fellow developer Kalium Lakes is also expected to begin production this year.

The Balcatta-based business owns the $248 million Beyondie SOP project in the Pilbara, which is expected to deliver 90,000tpa over 30 years.

The project, backed by a $74 million loan from the federal government’s Northern Australia Infrastructure Facility, is expected to begin production in the latter half of 2021.