K+S seeks WA salt site

German fertiliser and salt giant K+S is looking to set up an Australian presence, with the company understood to be looking over WA salt and potash opportunities.


The €6.5 billion ($10.3 billion) company has hired lobby firm Cannings Purple ahead of a possible move to open a Perth office, and is believed to be running its eye over potential acquisitions.

A spokesman for K+S confirmed the company was eyeing an Australian expansion this week, but did not comment on details of its plans.

“K+S is continually looking for potential development opportunities around the world,” he said.

“We currently do not have a presence in Australia, but believe it offers some natural opportunities for our business of salt and potash production, and a potential avenue for us to better capitalise on the growing Asian markets.”

But there are no late stage potash projects in WA and industry sources suggest K+S is unlikely to be looking for exploration-stage projects in the fertiliser, given it is still building a $4 billion potash mine in Canada.

Instead it is believed the German giant is considering a move into WA’s salt industry.

While the sector has a generally low profile compared with its bigger peers in resources, the State produced 11.7 million tonnes of salt worth $384.6 last financial year, according to Department of Mines and Petroleum figures.

Neither of the State’s two major producers, Rio Tinto’s Dampier Salt operations and Mitsui’s Onslow Salt, are considered to be on the market.

Industry sources suggest K+S is more likely to move on a smaller operator to gain a toehold in the State rather than try to prise one of the two big exporters from their existing owners.

K+S is the world’s biggest salt producer and has a significant presence in the potash industry.

Its Legacy mine in Canada, due to begin production in mid-2016, has also made K+S a target for Canada’s Potash Corp, which in 2010 was a $US39 billion takeover target for BHP Billiton.

K+S rejected a Potash Corp overture last month but Potash is expected to make a hostile bid.

https://au.news.yahoo.com/thewest/wa/a/29539367/k-s-seeks-wa-salt-site/