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Kalium Lakes (ASX:KLL) commissions 7.5MW power station for Beyondie project, WA

Materials
ASX:KLL      MCAP $50.79M
13 May 2021 11:40 (AEST)
Kalium Lakes (ASX:KLL) - CEO, Rudolph van Niekerk

Source: Supplied

Kalium Lakes (KLL) has fully commissioned a 7.5-megawatt power station to power its Beyondie Sulphate of Potash (SOP) project in Western Australia.

Three 2.5-megawatt engines and their associated equipment are now fully operational, with Kalium also holding all necessary licences and permits as it brings the Beyondie project closer to commercial production.

Each engine was tested on-site as Kalium worked with power station contractor Clarke Energy to build the station up.

Kalium CEO Rudolph van Niekerk said now that the power station has been commissioned, Kalium plans to start commissioning the process plant over the coming weeks.

“This milestone, combined with harvesting activities that are in full swing and an operations team that is ready for production, represents a major step forward and significantly de-risks the project in meeting its first production targets,” Rudolph said.

He said the company is on budget and on schedule to reach first sales from the Beyondie project during the June quarter of 2021.

“The SOP plant is also entering final stages of construction, with work fronts open to all disciplines, including electrical, instrumentation and piping work,” he said.

“Completion of the standard grade SOP plant is being prioritised and this will be closely followed by completion of the compaction plant, which will use the standard SOP to produce granular SOP.”

So far, Kalium has pumped 93,000 tonnes of contained SOP from the surrounding bore field and trenches into the Beyondie project’s primary evaporation ponds since 2019.

The company said it has completed the construction of a run-of-mine (ROM) pad in the project area and lined it with halite to prepare it for potassium salt stockpiles.

Meanwhile, Kalium is busy harvesting potassium salts to transfer them to the ROM pad as it prepares to commission and commence production from Beyondie.

What is sulphate of potash?

Sulphate of potash, sometimes called potassium sulphate, is essentially a mineral plant fertiliser.

It provides plants with potassium and sulphur — crucial ingredients to help them grow — but has very low amounts of salt in it compared to fertiliser alternatives.

This gives SOP important applications for the agriculture sector because crops like fruits, vegetables, potatoes and coffee are particularly sensitive to salt.

As such, SOP is the preferred fertiliser for the Australian food industry.

Shares in Kalium Lakes have tacked on a slight 2.56 per cent this morning as the company edges closer to commercial SOP production, with shares at 20 cents each as of 10:35 am AEST. The company has a $168 million market cap.

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