TIDMSO4
RNS Number : 9360L
Salt Lake Potash Limited
18 January 2021
18 January 2021 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
Lake Way Project nearing completion - Process Plant and NPI well
advanced
Salt Lake Potash Limited (SO4 or the Company) is pleased to
provide an update on progress at its Lake Way Project at Wiluna in
Western Australia.
Highlights
-- The Process Plant was 88% complete on 31 December 2020 (on an
earned value basis). The overall project, including all on-lake
infrastructure, was 81% complete.
-- Major items now installed include the SOP and schoenite
crystallisers, centrifuges, attritioners, drag feeders and
conveyors, with most of the remaining works comprising piping,
cabling and valves installation.
-- Non-Process Infrastructure (NPI) is well advanced with
process water borefields and storage ponds commissioned,
construction of gas pipeline substantially advanced, and
installation of power station commenced.
-- Approximately 27kt of potassium rich kainite and schoenite
salts have been harvested for commissioning plant feed from the
Train 1 cells. Harvesting activities will re-commence in March
ahead of plant commissioning.
-- Process Plant commissioning expected to commence in February
with introduction of first feed salts to the plant in March. The
project capital budget remains unchanged at A$264m.
-- In January 2021 the Organic Farmers & Growers association
in the UK (OF&G) approved the Lake Way SOP product for use in
organic farming in the UK.
-- In December 2020, SO4 received the Community Contribution
Award at the Association of Mining and Exploration Company (AMEC)
annual awards.
TONY SWIERICZUK, Chief Executive Officer
""I am extremely proud of the way the GR Engineering Services
and SO4 teams have worked to safely and efficiently deliver the
Lake Way project. Significant progress was made in a challenging
environment in 2020 with minimal impact on the project and we now
look forward to supplying the domestic and global agricultural
industries with premium SOP in the second quarter of 2021."
Process Plant reaches 88% completion (value earned basis)
At December 31st, 2020 the Process Plant was 88% complete on a
value earned basis with site concrete work (including additional
NPI and bagging infrastructure) 94% complete, structural steel 80%
complete and tanks/vessels 81% complete.
Major items now installed include the SOP and schoenite
crystallisers, attritioners, drag feeder, conveyors, lump breaker,
various tanks and agitators, chillers, transformers, utilities
switch room and various pumps, hoppers and launders.
Associated piping, cabling and valves installation now comprise
most of the remaining work on an earned value basis.
The four primary conveyor structures that feed the plant and
discharge waste NaCl have been fully erected. They will be
commissioned in the next few weeks.
The Company expects Process Plant commissioning to commence in
February with the introduction of first feed salts to the plant
occurring in March.
Non-Process Infrastructure advances
The raw water pond has been lined and commissioned, and both the
Southern and West Creek Raw Water Borefields supplying the plant
and village have been commissioned.
Construction of the 27km APA gas pipeline that connects with the
Goldfields Gas Pipeline commenced in November 2020. The pipeline is
currently 99% welded and 67% placed and backfilled. Full
installation is expected to be completed in late January.
Concrete footings for the gas generators have been completed.
The units are in Perth and will arrive on site this week for
installation.
Procurement
Total procurement for the Process Plant reached 96% on December
31st, 2020. Recently a small number of items have experienced minor
delays due to dynamics in the COVID effected global shipping
markets. Specifically, consignments including flooring grid mesh,
cage crusher, and some valves and pumps have been delayed by a few
weeks. The Company is working closely with GRES and its suppliers
to minimise the impact of any potential delays caused by shipping.
At this stage, the delays in shipping will not impact
commissioning.
Plant feed salt harvesting commenced
Harvesting of potassium rich kainite and schoenite salts from
Train 1 was undertaken with approximately 27kt of salts now
stockpiled ahead of plant commissioning. Salts have been harvested
successfully using a tractor and scraper methodology. Assays from
the harvest salt stockpiles have returned grades in-line with the
system curve and planning models.
AMEC community contribution award
In December 2020 SO4 received the Community Contribution Award
at the 2020 Association of Mining and Exploration Company (AMEC)
annual awards.
The award recognised the Company's efforts to deliver
sustainable and long-lasting social and economic benefits to the
Wiluna region through strategic partnerships, community investment
and opportunities in employment and training.
Certification for organic use granted in the UK
In January 2021 the Organic Farmers & Growers association in
the UK (OF&G) approved the Lake Way SOP product for use in
organic farming in the UK. Use is restricted to growers who have
made an application with OF&G, with approval normally given on
receipt of a representative soil analysis for each field indicating
a K20 index of 2- or less and a professional recommendation for
use.
OF&G certifies more than half of organic land in the UK and
ensure that the European Organic standards are carried out on
organic farms and businesses across the UK. The OF&G
certification is the first organic certification received for the
Lake Way SOP product and confirms its use as described above for
organic markets in the UK.
In addition to the OF&G certification, SO4 is also seeking
Organic Certification from several other domestic and international
bodies, including EU Ecological Certification, the Organic
Materials Review Institute (OMRI) the ACO (Australian Certified
Organic) and UK Soil Association. SO4 will update the market on
progress with these certifications in the months ahead.
Grant Coyle appointed Interim CFO
Grant is an experienced corporate finance executive having been
appointed as SO4's Head of Corporate Development in July 2018 and
playing a lead role in delivering the US$138m Taurus / CEFC funding
package. Prior to SO4 Grant held an executive position at Rio Tinto
working across the business analysis and business development areas
within the Iron Ore division. He is a former investment banker at
Macquarie Bank and corporate tax accountant for an international
accounting firm.
Grant has extensive experience in finance, budgeting, project
evaluation, commercial negotiations and strategic planning.
The Company is undertaking an external search ahead of the
appointment of a permanent CFO.
For further information or to view a full version of this
announcement, including site layout and photos, please
visit https://www.so4.com.au/asx-announcements/ or contact:
Tony Swiericzuk / Richard Knights Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Seamus Fricker Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Derrick Lee / Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
This announcement has been authorised for release by the
Managing Director, Mr Tony Swiericzuk.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the UK Market
Abuse Regulation. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
Forward Looking Statements
This announcement includes forward-looking statements. These
forward-looking statements are based on the Company's expectations
and beliefs concerning future events. Forward-looking statements
are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of the Company, which could
cause actual results to differ materially from such statements.
Although the Company believes that its forward-looking statements
have reasonable grounds, can give no assurance that they will be
achieved. They may be affected by a variety of variables and
changes in underlying assumptions that are subject to risk factors
associated with the nature of the Company's business (including
those described in pages 25 to 29 (inclusive) of the Presentation
released to ASX on 11 December 2020), which cause actual results to
differ materially from those expressed herein. The Company makes no
undertaking to subsequently update or revise the forward-looking
statements made in this announcement, save where required by law or
regulation, to reflect the circumstances or events after the date
of this announcement.
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