Australian potash specialist Salt Lake Potash [LSE:SO4] is...

Australian potash specialist Salt Lake Potash [LSE:SO4] is planning to bring a new source of SOP online which it wants to sell as a premium grade to quality SOP.

This includes high potassium low chloride standard powder and fertigation high grade potassium. It has signed binding term sheets with five leading distributors and over 90% of planned production has been committed for five and 10 year terms.

Among the distributors are Unifert, with has signed up for 60,000 tpa and Helm, which is in for 50,000 tpa.

The Salt Lake Potash Lake Way development in Australia is looking at EBITDA of A$111 million per annum with a 28% IRR post tax.