Trigg Mining (ASX: TMG) is set to enjoy a significant infrastructure boost at its wholly-owned Lake Throssell sulphate of potash (SOP) project near Laverton in Western Australia following a state and federal government commitment to upgrading a major transport link through to Queensland.
WA’s McGowan Government has partnered with the Commonwealth Government to seal the remainder of Outback Way as part of a $678 million project to deliver a new strategic transport and tourism route with the eastern states.
Outback Way is known as “Australia’s longest shortcut”, linking Queensland, the Northern Territory and WA by 2,720 kilometres of road.
Approximately $500 million of the funding will be used to seal an 872km section of the road which sits within WA, and the balance will help seal the road in the Northern Territory and Queensland.
Work is already underway to seal the first 147km as part of a previous government-funded initiative due for completion in mid-2026.
National transport route
Trigg managing director and chief executive officer Keren Paterson said the new road would create a national transport route for freight and tourism, and would be a vital piece of infrastructure to support Lake Throssell’s development.
“The upgrading of Outback Way prior to the start of [our] construction will improve the safety and efficiency of site access during development and operations at Lake Throssell,” she said.
“We are pleased that the mining industry’s presence in the region has added to the business case for governments to develop the road, which will also improve community safety and open up tourism opportunities.”
Good news stories
The road upgrade is the latest in a string of good news stories for Lake Throssell.
In October, Trigg delivered a positive scoping study for the project, which included an annual nameplate production target of 245,000 tonnes per annum of SOP over a 21-year life of mine, based on a total drainable mineral resource of 14.4 million tonnes at 4,665 milligrams per litre of potassium (or 10.4 kilograms per cubic metres of SOP).
The study estimates an initial capital cost of $378 million, including a $70 million contingency and is forecast to generate average earnings before interest, tax, depreciation and amortisation (EBITDA) of $97 million per annum at an SOP price of $764 per tonne.
In January, the company secured critical native title agreements with the land’s traditional owners including the Ngaanyatjarra and Nangaanya-Ky peoples.
The agreements enabled the granting of four strategic tenements and expanded the project’s footprint by 235% to 1,085 square kilometres.