From Saturdays West Australian Investors in Kalium Lakes are...

From Saturdays West Australian


Investors in Kalium Lakes are nervously awaiting news from the fledgling sulphate of potash producer after it called a trading halt ahead of an update about its commissioning strategy.

The company boldly declared in October it had become Australia’s first producer of the high-value fertiliser from its flagship Beyondie project 160km south-east of Newman, but since then its ongoing commissioning and ramp-up has been plagued by teething problems.

In December, it warned potassium salts harvested during calendar year 2022 were expected to be lower than initially expected, although long-term targets remained unaffected.

Kalium was also forced to idle its purification plant to allow rectification works, which it said were expected to be completed in March.

However the Len Jubber-led company has said it expected the purification plant issues to be fully resolved in accordance with performance guarantees provided by its German engineering contractor EBTEC.

Kalium has also battled with inconsistent brine flow, although last month it said targeted flow rates had been restored.


The company had previously flagged an update on the commissioning and production ramp-up schedule at Beyondie in late February, but the trading halt has some shareholders on edge.

The company had previously flagged an update on the commissioning and production ramp-up schedule at Beyondie in late February, but the trading halt has some shareholders on edge.

Shortly after trumpeting first production in October, the company announced a previously flagged $50m capital raising to to lift production from 90,000 to 120,000 tonnes per annum to achieve essential scale at Beyondie by the fourth quarter of calendar 2022.

At the same time, the company undertook a debt restructuring to provide working capital during the project’s ramp-up, as well as an additional liquidity facility of $20m.

Kalium also negotiated with its German offtake partner K+S to accept the expanded production with improved payment terms for first three years to assist with its working capital needs.

K+S has agreed to take 100 per cent of Beyondie’s product for 10 years.

At the end of December, Kalium had $52.8m in cash and unused financing facilities of $25.8m.

It is one of a handful of aspiring WA sulphate of potash producers looking to tap the State’s vast inland salt lakes for the mineral that is used as a fertiliser for high-value, chloride-sensitive crops crops such as fruit, vegetables, tea, coffee, nuts and tobacco.

The product commands a significant premium to the more commonly used muriate of potash.

Concerns for the future of the nascent industry spiked in October when the Ian Middlemas-chaired Salt Lake Potash was placed in the hands of receivers after failing to raise the extra $90m it needed to fix major harvesting and processing problems at its Lake Way project near Wiluna.

Kalium shares, which have been trending lower since October, last changed hands for 10¢, giving it a market capitalisation of $118m.