Agrimin moves closer to sulphate of potash goal with offtake agreements for Mackay project
Agrimin has three binding offtake agreements that cover 70% of its planned SOP production at Mackay, with discussions continuing with potential project partners and financiers.
Agrimin (ASX: AMN) has moved a step closer to its goal of establishing its Mackay project in Western Australia as the world’s leading seaborne supplier of sulphate of potash (SOP) fertiliser with the signing of a third offtake agreement during the June quarter.
The company inked a binding deal with US-based wholesale crop nutrients distributor Gavilon Fertiliser LLC in April, for the supply of 50,000 tonnes per year SOP over a seven year term.
The deal follows the signing of earlier agreements with China’s Sinochem Fertiliser Macao for 150,000tpa over 10 years and US-based Nitron Group for 115,000tpa over seven years.
The total 315,000tpa across all three customers means Agrimin has met its target of securing a minimum 70% of its planned 450,000tpa SOP production capacity under long-term binding offtake agreements.
Discussions with potential project partners and financiers continue.
FEED work
Agrimin’s integrated owner’s team continued to progress the front-end engineering and design (FEED) phase of the Mackay project during the three months to June, supported by consultants and contractors across various disciplines.
Primero Group was engaged to advance engineering and design for the project’s processing plant and associated non-processing infrastructure.
Royal IHC was appointed to manage FEED works in relation to automated wet harvesters while Coffey Services Australia will manage the civil construction aspects, with an on-lake trial planned to commence next month.
Tanami Road funding
In May, the WA Government announced it would allocate $100 million towards sealing of the Tanami Road which Agrimin plans to utilise once the Mackay project is in production.
The funding complements the Federal Government’s $400 million contribution towards the project and will improve safety, accessibility and flood resilience to better support local communities and industries using the route.
Tanami Road is a key section of Agrimin’s planned trucking route from the Mackay project to Wyndham Port.
The state government funding is directly applicable to a section of the existing unsealed road which Agrimin plans to use during its trucking operations.
Lake Auld project
Agrimin continued its consultations with Western Desert Lands Aboriginal Corporation (Jamukurnu- Yapalikunu) RNTBC during the quarter, with a view to advancing the Lake Auld potash project near Port Hedland.
The organisation is the native title representative body for the regional Martu people.
The project consists of a granted exploration licence covering an area of 108 square kilometres across Lake Auld.
Agrimin’s tenements cover the most prospective portion of the 450km-long lake system where historic sampling of brine returned the highest known in-situ SOP grades from any Australian salt lake.
The company said Lake Auld’s high grades, favourable climatic conditions for solar evaporation, and proximity to a major operating port support the potential for strong economics.