Agrimin has completed the first phase of FEED testwork in relation to the process plant for the Mackay potash project in Western Australia.
The testwork was completed by two different vendors under the direction of Primero Group, a subsidiary of NRW Holdings.
The FEED programme will now advance to the second phase of testwork to consider further opportunities in relation to operating parameters such as temperature range and feed grade variations.
This final phase will focus on the operability of the process plant to process a range of potassium-bearing salts that are expected to precipitate due to varying pond conditions throughout the seasons.
At the completion of the FEED works, Primero will deliver to Agrimin an EPC contact, inclusive of performance guarantees, to support a final investment decision.
Mark Savich, CEO of Agrimin said: “The Mackay Potash Project continues to progress extremely well with multiple FEED programs underway and project approvals being well advanced.
“Potash supply is being affected significantly given Russia and Belarus account for approximately 40% of global supply. In addition to economic sanctions against Belarus, Russia recently announced a ban on fertiliser exports which has further exacerbated very tight market conditions. As a result, potash prices across all product types continue to move higher.
“It could take several years for global potash trade flows to normalise and Agrimin is in an excellent position with a Tier 1 potash project in Australia that is on track to be shovel ready this year.”
… “….Following the FEED contract, Primero will provide Agrimin with an engineering, procurement and construction (EPC) contract, which will allow Agrimin to proceed with a final investment decision.
The project is projected to contain 123 million tonnes of SOP at a processed grade of 52 per cent potassium oxide. After the project was granted its major project status by the Australian government in 2020, Australia’s Minister for Industry, Science and Technology Karen Andrews described just how important the Mackay potash project was to the industry and the country.
“The project will create approximately 300 jobs during construction and 200 jobs during operations and is estimated to support more than 600 jobs through the broader region and supply chain,” Andrews said.
“Value-adding to our critical minerals offers Australia huge economic opportunities but given this fertiliser is used extensively by our farmers, it can also further strengthen our sovereign capability.” As the world’s largest undeveloped SOP brine deposit, Mackay’s estimated 20-year lifespan is aiming to produce $315 million in annual sales revenue. Agrimin’s Mackay potash project includes the mine, processing plant, integrated logistics chain and port facility.”
(20min delay)