Australian Potash’s Lake Wells Sulphate of Potash project remains on track after the ASX-listed company was notified by the Office of Appeals Convenor that the WA Minister for the Environment has dismissed an appeal against the EPA Board’s recommendation that the Lake Wells Sulphate of Potash, or “LSOP”, be approved for development.
The company said the Minister was satisfied with the EPA’s assessment of risks to “Social Surrounds” and recommended one of the EPA’s conditions be amended for the project located 180km north-east of Laverton in WA’s Eastern Goldfields.
Australian Potash said the approvals process will now move onto a further consultation process between the Minister and other relevant stakeholders to consider the implementation of the project and any additional conditions which may apply.
We are pleased to advise shareholders of the resolution of the EPA Report and Recommendations appeal. We have been thorough and rigorous in ensuring relevant studies and consultation has occurred throughout the approvals pathway. We look forward to the final Ministerial Statement once the Minister has completed the consultation process.
After tabling a DFS for its LSOP back in 2019, the Perth-based potash developer has been busy with its front-end-engineering-design, or “FEED” process, ahead of letting out the various EPC contracts and a final investment decision, to give go-ahead for construction to commence.
The prize for Australian Potash is a 30-year mine life and a forecast output of 150,000 tonnes per annum of premium-grade fertiliser under its registered trademark brand, K-Brite.
The DFS outcomes point to average annual free cash flows after tax of $70 million and average EBITDA of $114 million per annum across its predicted life-of-mine, delivering a pre-tax NPV8 of $665 million for an IRR of 25 per cent.
Australian Potash is looking at a Lake Wells project financing split of 65 per cent debt funding and 35 per cent equity funding. The company is in detailed discussions with the Northern Australian Infrastructure Fund and other domestic and international lenders
With a fifth offtake agreement signed and sealed last year and funding negotiations into the due-diligence phase for its proposed $208 million LSOP project, Australian Potash is still targeting a final investment decision early this year.
Is your ASX listed company doing something interesting? Contact: email@example.com