A SECOND Western Australian Sulphate of Potash (SoP) fertiliser project has been granted major project status by the Federal government because of its potential economic and employment benefits.
On Monday last week, Industry, Science and Technology Minister Karen Andrews, Resources, Water and Northern Australia Minister Keith Pitt and Federal Durack MP Melissa Price jointly announced the $637 million Lake Mackay SoP project on the WA-Northern Territory border had been declared a major project.
Agrimin Ltd - AMN on Australian Securities Exchange (ASX) listings - plans to produce up to 426,000 tonnes of premium water soluble SoP fertiliser a year for more than 20 years by collecting hypersaline brine in trenches across the usually dry salt lake surface.
Moisture will be evaporated off in a series of shallow on-lake ponds and a harvest slurry pumped to a processing plant powered mostly by wind and solar generation at the remote desert location near the Aboriginal community of Kiwirrkurra.
AMN plans to truck its SoP fertiliser product about 940 kilometres across deserts to the port of Wyndham using a dedicated fleet of road trains provided under its Newhaul Bulk joint venture with trucking specialist Craig Mitchell.
The plan is to train and use local indigenous truck drivers.
Earlier this month AMN told investors it was on track to complete a definitive feasibility study on its Lake Mackay SoP project by the end of June.
It has completed two years of pumping tests to determine flow rates in 22 trench sites and several batches of trial SoP fertiliser have been produced from 50t of potash salts harvested from an 18-month pilot evaporation trial.
Its projected production target makes AMN's Lake Mackay project the third largest SoP project in the world and the biggest of five WA SoP projects so far to reach the feasibility stage.
With a surface area of about 3500 square kilometres, Lake Mackay is Australia's second largest lake.
Ms Andrews said apart from replacing fertiliser imported into Australia, the project was expected to generate estimated annual global sales revenue of $315m, making it a significant contributor to the national economy.
"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," Ms Andrews said.
"The project will create about 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."
Ms Price said the project would be a boost for the East Pilbara.
"This project will contribute to the livelihoods of those living in Kiwirrkurra and surrounds, with the creation of a sealed road, sealed airstrip and improved communications," Ms Price said.
AMN chief executive officer Mark Savich said major project status, approved for the three-year period AMN plans to advance the project through its approvals, project funding and construction phases, would allow the Lake Mackay SoP project to receive additional government support.
"The granting of major project status is an acknowledgement of the (Lake) Mackay potash project as being of strategic significance to Australia, along with producing long-term benefits through a contribution to exports, employment and infrastructure development," Mr Savich said.
"We look forward to working with the Major Projects Facilitation Agency who will provide welcomed assistance during our Commonwealth government approvals process," he said.
Major project status provides companies with extra support from the Major Projects Facilitation Agency, including a single entry point for Commonwealth government approvals, project support and co-ordination and help with State and Territory approvals.
Last September Kalium Lakes Ltd (KLL) was granted major project status for its Beyondie SoP project in the Little Sandy Desert 160 kilometres south east of Newman which, at that stage, was on target to become Australia's first SoP fertiliser producer and exporter.
But, as reported in last week's Farm Weekly, KLL's first commercial production of SoP fertiliser has been delayed by up to six months as the company reportedly is seeking to raise an extra $60m to cover cost overruns and complete the construction phase.
KLL's shares have voluntarily been suspended since February 24 while an independent review of capital expenditure costings and contingencies, future financing requirements and the ongoing impact of the COVID-19 pandemic on its operations is carried out.
A detailed statement is expected to the ASX before the end of the month.
With KLL's start up delayed, Salt Lake Potash (SO4) is now projected to be the first WA company to begin producing and exporting SoP fertiliser in the first quarter next year from its fast-tracked Lake Way project 25 kilometres south of Wiluna.
But SO4 first has to complete an environmental approvals process.
On Thursday last week the Environmental Protection Agency (EPA) indicated it had approved SO4's Lake Way project scoping document for assessment and this will now be carried out as an environmental review with no public consultation.
The EPA-proposed timeline for assessment is SO4 submits a formal first draft environmental review document by tomorrow (Friday, May 22). with the EPA scheduled to complete its assessment by August 7 and to send its assessment report on September 18 to WA Environment Minister Stephen Dawson for signing off.
Also on Thursday last week, SO4 announced it had appointed experienced resources chemicals engineer Matt Bungey to its board.
Mr Bungey, who is also an independent director of the construction materials BGC Group, has worked as a consultant to SO4 since the beginning of 2019 and has played a key role in advancing the Lake Way project, SO4 said.
