Australian Potash Limited Lake Wells Sulphate of Potash (SOP) Project
Loan towards to the construction and development of the Lake Wells Sulphate of Potash Project (Investment Decision: March 2021)
About the Project
The Lake Wells Sulphate of Potash Project – located 160km north-east of Laverton in the Eastern Goldfields region of Western Australia – is the current flagship project for Australian Potash.
NAIF’s $140m loan will be used by the company for key infrastructure including a processing plant and equipment. The Project will comprise of brine abstraction and evaporation operations, a salt processing plant and associated infrastructure to produce 170ktpa of SOP over a 30 year mine life.
SOP is primarily used as fertiliser for agriculture. NAIF’s loan illustrates further support for Australia’s critical minerals sector.
Securing NAIF’s commitment is a key step in Australian Potash Limited’s funding strategy and is one tranche of a multi-tranche debt facility.
Note: Financial assistance to the project is subject to a number of conditions including the finalisation of the Western Australian Government’s consideration and agreement for the approved funds to be advanced.
Australian Potash satisfactorily meets the IES Mandatory Criterion under the NAIF Investment Mandate with outcomes across Indigenous participation, procurement and employment appropriate to the nature and scale of the project and the size of the NAIF loan.
This includes Indigenous employment targets of 14% workforce during construction and 15% during operations and creating training and employment pathways through the STEM and VET programs.
Economic Impact and Public Benefit
An independent economic analysis has assessed the project to provide significant benefits to Northern Australia of $547m in NPV, which includes an undertaking from the Company to source from Northern Australia, 30% of relevant work packages and 24 FTE during three years of construction and 32 FTE jobs during operations.