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- WA Kaolin (WAK) has signed a $22 million deal with Mid-West LNG, a subsidiary of Clean Energy Fuels Australia’s (CEFA)
- Under the 15-year-long contract, CEFA will supply liquefied natural gas (LNG) to WA Kaolin from its new LNG plant in WA
- WA Kaolin will use the LNG as part of its dry processing method for kaolin ore
- The contract will officially commence on January 1, 2022 and run for 15 years with reviews at the fifth and tenth year mark
- Company shares are up 16.2 per cent and are trading at 21.5 cents
WA Kaolin (WAK) has signed a $22 million deal with Clean Energy Fuels Australia’s (CEFA) subsidiary, Mid-West LNG.
This 15-year-long contract will see CEFA supply liquefied natural gas (LNG) for WA Kaolin’s Wickepin Kaolin Project in Western Australia.
WA Kaolin will use the LNG to fire the project’s rotary kiln that dries the kaolin ore. This is the first step of the company’s K99 dry processing method.
“We are thrilled to have entered into a 15-year contract with CEFA, one of WA’s leading energy solution providers,” CEO Andrew Sorensen said.
CEFA provides integrated solutions to develop small-scale LNG infrastructure assets for remote mining operations in Australia. Currently, the energy company is investing in new production plans and LNG infrastructure to to provide a lower emissions fuel to rural areas.
Through Mid-West LNG, CEFA is building its own LNG plant in Mount Magnet which is about 600 kilometres north of the Wickepin Kaolin Project. WA Kaolin is the second customer being supplied LNG from this new facility.
Once it’s built, the site is expected to become a $100 million investment that will supply over 500 tonnes of LNG per day.
The contract will officially commence on January 1, 2022 and run for 15 years with reviews at the fifth and tenth year. The contract may also be extended for a further 10 years under two options.
Company shares are up 16.2 per cent and are trading at 21.5 cents at 11:46 am AEST.
