KALIUM LAKES KEY CONTRACTS AWARDED – PURIFICATION PLANT

Highlights

  • Key Purification Plant contracts have been awarded in excess of $60M:
    • Ebtec GbR (K-UTEC and Ebner) awarded Engineering and Procurement Contract forpurification plant design plus supervision and commissioning services
    • DRA Global (DRA) has been awarded the EPCM contract for the overall project delivery
    • Maschinenfabrik Köppern GmbH & Co. KG (Köppern) awarded the compaction plant forproduction of granular SOP
    • Firm Construction Pty Ltd to provide WHS implementation across Beyondie SOP Projectsite in accordance with the Office of the Federal Safety Commissioner
  • Performance guarantees on quality, throughput and timeframes are included
  • All contracts awarded within budget and confirm the 15-month post FID schedule
  • Australia’s first Sulphate of Potash production on schedule to begin in 2020

Kalium Lakes Limited (Kalium Lakes) (ASX:KLL) is pleased to announce that it has awarded the key contracts for the engineering, procurement, construction management and commissioning associated with the development of the Purification Plant facilities for its Beyondie Sulphate of Potash Project (BSOPP). The total value across the four key contracts awarded is in excess of $60 million. The contracts allow commencement of early works with the full scope subject to a Final Investment Decision (FID).

Importantly, all the contracts awarded are within the budget outlined in the Bankable Feasibility Study (BFS) and Front-End Engineering and Design (FEED). The contracts confirm the 15-month construction schedule post a FID, followed by a commissioning and ramp up period.

Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, commented: “We have spent a significant amount of time and effort ensuring we selected the right partners to deliver each of the important ingredients for a successful, integrated project.

“Companies with SOP specific experience and capabilities are hard to find, especially when looking for those that have taken projects from design into execution, then on to production. After years of investigation and months of negotiation, we have compiled a contracting strategy that brings a bankable solution, as well as achieving the next significant milestone to take us into the development stage of the project.

“We are very pleased to have concluded the contracts with companies that have become critical partners in the successful completion of the BSOPP as we enter the next, exciting stage of the Project together,” Mr van Niekerk said.

The consortium Ebtec GbR (Ebtec) is an arrangement between K-UTEC AG Salt Technologies(K-UTEC) and Ebner GmbR (Ebner) to provide Engineering, Procurement and Supervision (EPS) services for the BSOPP. Both parties have worked together recently to provide similar services for a SOP plant in Austria that has been successfully running for a number of years. Ebtec will supply the process plant and provide equipment installation supervision, followed by the commissioning of the plant.

Ebtec’s contract includes performance guarantees to ensure the quality of SOP production is in line with the requirements of the K+S Offtake Agreement and includes liquidated damages for performance and schedule. The contract also includes a bonus arrangement.

An Engineering, Procurement and Construction Management (EPCM) contract has been executed with DRA, with that company taking the lead on overall BSOPP development and commissioning. DRA brings significant global and Western Australia specific project development experience, combined with SOP specific knowledge and experience that was developed with the involvement of DRA, since the Pre-Feasibility Study (PFS) stage of the BSOPP. DRA have developed the basis for the overall project scope, budget and schedule.

Maschinenfabrik Köppern GmbH & Co. KG has been awarded the engineering and supply of key equipment associated with the compaction plant for the production of granular SOP. Köppern brings SOP specific compaction experience and have successfully delivered these plants for other SOP projects, including K+S.

A construction contract with Firm Construction Pty Ltd (Firm) has also been awarded for various construction services for the BSOPP. Firm is accredited under the WHS Scheme with the Office of the Federal Safety Commissioner, a requirement of Northern Australia Infrastructure Facility (NAIF) financing.

 

The Companies

 

K-UTEC AG Salt Technologies is based in Germany and has completed the PFS, BFS and FEED, as well as developing the process design and engineering for the BSOPP.
For more information click this link: https://www.k-utec.de/en/our-company.html

 

Ebner GmbR is a German engineering company who specialises in fabrication, procurement and construction of brine processing plants and equipment.
For more information click this link: https://ebner-co.de/en/about-us/the-company/

 

DRA Global is a diversified global engineering, project delivery and operations management group headquartered in Perth, Australia, with an impressive track record spanning more than three decades. Known for its collaborative approach and extensive experience in project origination and delivery, as well as turnkey operations and maintenance services, DRA Global delivers optimal solutions that are tailored to meet clients’ needs. With expertise in the areas of project development, mining, mineral processing, plant optimisation, operations, maintenance and related water, energy and infrastructure requirements, DRA Global delivers truly comprehensive solutions to the resources sector. DRA Global employs over 4,300 people and offers flexible engineering, project delivery and operations and maintenance management services worldwide through 17 offices.
For more information click this link: https://www.draglobal.com/

 

Maschinenfabrik Köppern GmbH & Co. KG brings SOP specific compaction experience and has successfully delivered similar plants for other SOP projects, including K+S.
For more information click this link: http://www.koeppern-international.com/

 

Firm Construction Pty Ltd is accredited under the WHS Scheme with the Office of the Federal Safety Commissioner, a requirement of the NAIF financing.
For more information click this link: https://www.firmconstruction.com.au/

 

Next Steps

Kalium Lakes is well progressed towards completion of all financing tasks and a Final Investment Decision in the second quarter of 2019.

 

MilestonesIndicative Timeline
Continue Early Works Construction ActivitiesOngoing
Complete Front-End Engineering Design (FEED)Complete
Finalise Binding Offtake AgreementComplete
Award EPC/M and Lump Sum ContractsComplete
Finance Due Diligence CompleteQ2 2019
Receive Final Approvals for Government AgenciesQ2 2019
Project Financing CompleteQ2 2019
Final Investment Decision (FID)Q2 2019
Full Construction Activities~15 Months from FID
Commissioning and Ramp Up to Name Plate ThroughputDuring 2020

 

Original article: https://www.kaliumlakes.com.au/site/wp-content/uploads/austocks/kll/2019_05_23_KLL_1558563600.pdf