Agrimin progresses Mackay potash project to take advantage of historically high prices
Agrimin chief executive officer Mark Savich says global potash prices remain at historically high levels and supply is anticipated to be constrained for several years.
At a time of historically high potash prices, Agrimin (ASX: AMN) has further progressed its flagship Mackay project in Western Australia’s north, with many of the larger front-end engineering programs completed and environmental approvals “well advanced”.
The company has now finished the five-week on-lake civil construction trial on Lake Mackay, which will be used for the FEED study.
Observations from the on-lake civil construction trial are expected to assist with trench and pond embankment construction.
The trial gave Agrimin key data relating to the productivity of critical equipment that will drive schedule and cost. It also allowed for optimisation of the construction method.
These results will be used to finalise FEED works including operating and capital cost estimates – mitigating any schedule and budget risks during construction.
Agrimin chief executive officer Mark Savich said project development was progressing “extremely well”.
“Global potash prices remain at historically high levels and supply is anticipated to be constrained for several years ahead due to Russia and Belarus previously accounting for 40% of global production.”
Mr Savic said Mackay was in an “excellent position” to take advantage of the elevated potash prices, adding it would be “shovel ready” in 2023.
Advancing Mackay potash project
Agrimin’s strategy for Mackay is to build it into a world leading supplier of sulphate of potash (SOP) fertiliser to international markets.
The project is located on the Lake Mackay, which is the largest undeveloped potash-bearing salt lake globally.
Significant volumes of brines at Lake Mackay contain dissolved potassium and sulphur, which can produce a high-grade, water-soluble SOP fertiliser.
According to Agrimin the SOP generated at Mackay is ideal for use on high-value fruit and vegetable crops. It is also certified for use in organic production systems.
The project is 940km south of Wyndham Port, which is where Agrimin proposes to ship the potash from to international markets.
Mackay’s tenement package spans 3,000 square kilometres in WA, with a further 1,200sq km of tenements under application in the Northern Territory.
In developing Mackay, Agrimin will create on-lake infrastructure such as brine extraction trenches, solar evaporation ponds and salt harvesters.
Off-lake infrastructure will include a processing plant, power station, process water bore field and other necessary site facilities.
To transport the potash, Agrimin will seal the haul road and secure a port storage and barge loading facilities.
Agrimin has three binding offtake agreements under its belt amounting to 70% of its planned annual SOP production.
Meanwhile, discussions with potential project partners and financiers are continuing.