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Kalium Lakes awards purification plant contracts

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Global Mining Review,

Kalium Lakes Limited 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 sulfate of potash project (BSOPP). The total value across the four key contracts awarded is in excess of US$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,” 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.

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