Kalium Lakes Beyondie SOP
Beyondie Sulphate of Potash Project (initial Investment Decision February 2019)
The NAIF loan is a key contributor towards Kalium Lakes Limited, the developer of the Beyondie project, becoming Australia’s first Sulphate of Potash (SOP) producer and the creation of a new domestic industry as there is currently no SOP production in Australia.
About the Project
Kalium Lakes is an Australian, publicly listed exploration and development company, focused on developing the Beyondie project in Western Australia with the aim of producing SOP, a high yield, premium fertiliser, for both domestic and international markets. SOP is used to cultivate fruits, vegetables, berries, potatoes, beans, cocoa, tobacco and tree nuts.
The project aims to commence production at 90ktpa of SOP, before ramping up to 180ktpa. It is designed to be a low cost, long life and high margin producer with an initial mine life of between 30-50 years.
- 78km lateral gas pipeline (to be connected to the Goldfields Gas Pipeline).
- Gas fired power station.
- Upgrade of a connecting road (to the Great Northern Highway).
- Communication facilities.
- Accommodation village
The Value NAIF Brings
NAIF has approved the provision of a $48m Infrastructure Development Facility and a Project Development Facility of up to $26m. On 26 August 2021 the NAIF Board made an Investment Decision to offer an additional Financing Mechanism of $10 million to support the Beyondie Sulphate of Potash Project.
The NAIF loan approval was a major milestone for the Beyondie SOP Project. It:
- supports Australian agricultural producers with a greenfield project financing;
- fills a financing gap which private sector debt was unable to fill due to the nature of the commodity (not exchange traded) and it being the first domestic project of its kind; and
- will allow Kalium Lakes to bring forward construction of the gas pipeline and the on-site gas fired power station (reducing operating costs).
- Developing the existing strong relationship with local Traditional Owners groups, the Gingirana and Birriliburu peoples.
- Proactive identification and support of candidates for employment opportunities.
- Training and support to improve employee retention and career progression.
- Promotion of procurement opportunities and supporting Indigenous business capacity building.
Proponents are required to regularly report on IES performance to NAIF – typically every six months during the construction phase and annually in the operational phase, for the length of their loan.
Communications on IES outcomes are available here:
Indigenous Engagement Strategy public summaries provide a short version of the IES and are available here:
Australian Industry Participation
Australian Industry Participation (AIP) requirements ensure full, fair and reasonable opportunity for Australian industry to compete for work. This includes work in major public and private projects in Australia, and procurements or projects receiving Australian Government funding of $20 million or more.
NAIF projects much comply with the Commonwealth’s AIP policy.
The AIP Plan developed by Kalium Lakes is available here.
Economic Impact and Public Benefit
- The project public benefit beyond that enjoyed by the proponent has been forecast by Deloitte Access Economics to be $169m over 30 years of the mine life.
- Benefits include 150 construction jobs and 60 jobs in operations.
NAIF’s media release regarding the Investment Decision to Kalium Lakes Limited can be found here
“We are delighted to have the support of NAIF as the gas supply infrastructure is now nearing completion and the first major harvest of potassium salts commenced, demonstrating that we can now harvest the amount of potassium salts needed to meet the processing plant’s production targets.
“Construction activity at the SOP purification plant is now approaching its peak, with the assembly of major steel components and the installation of the specialised mechanical processing equipment continuing on budget and on schedule.
“ Everyone at Kalium Lakes is aware that NAIF has recognised the public benefits of the Beyondie SOP Project, including providing an important domestic source of a fertiliser which, in turn, plays a significant role in improving agricultural productivity, Indigenous engagement and the creation of jobs in local communities.”
Rudolph van Niekerk
Kalium Lakes Chief Executive Officer