Kalium Lakes has awarded the key contracts for the engineering, procurement, construction management and commissioning associated with the development of the Purification Plant facilities at its Beyondie sulphate of potash project (BSOPP) in Western Australia.
The total value across the four key contracts awarded is in excess of A$60 million ($41 million), according to Kalium Lakes, and will see Ebtec GbR, DRA Global, Maschinenfabrik Köppern GmbH & Co and Firm Construction Pty join the project team.
The Beyondie SOP project aims to commence production at 82,000 t/y of SOP in 2020, before ramping up to 164,000 t/y of SOP for domestic and international sale. An initial mine life of between 30-50 years is anticipated for a project designed to be a low cost, long life and high margin producer, it said.
The contracts allow commencement of early works with the full scope subject to a final investment decision (FID), Kalium Lakes said.
“Importantly, all the contracts awarded are within the budget outlined in the bankable feasibility study (BFS) and front-end engineering and design,” the company said, with the agreements confirming the 15-month construction schedule, post FID, followed by a commissioning and ramp-up period.
The consortium Ebtec GbR is an arrangement between K-UTEC AG Salt Technologies and Ebner GmbR to provide engineering, procurement and supervision (EPS) services for the BSOPP, Kalium Lakes said. Kalium Lakes said both parties have worked together recently to provide similar services for a SOP plant in Austria that has been successfully running for several years. Ebtec will supply the process plant and provide equipment installation supervision, followed by the commissioning of the plant.
Ebtec’s EPS contract includes performance guarantees to ensure the quality of SOP production is in line with the requirements of an offtake agreement with fertiliser producer K+S and includes liquidated damages for performance and schedule, Kalium Lakes said.
An engineering, procurement and construction management contract has been executed with DRA, with that company taking the lead on overall BSOPP development and commissioning, according to Kalium Lakes. “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 prefeasibility study stage of the BSOPP,” the company said, adding that DRA has developed the basis for the overall project scope, budget and schedule.
Köppern has been awarded the engineering and supply of key equipment associated with the compaction plant for the production of granular SOP, Kalium Lakes said. “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 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 the Northern Australia Infrastructure Facility financing the company has agreed, Kalium Lakes said.
Kalium Lakes’ Chief Development Officer, Rudolph van Niekerk, said: “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.”