Australian Potash got the first offtake partner
The Australian Potash company has signed an offtake agreement with Redox to supply sulfate of potash (SOP) in the amount of 20 thousand tons per year. The contract is a binding 10-year take-or-pay term sheet, providing Redox with control over the sale and distribution of sulfate of potash across Australia and New Zealand.
Australian Potash will ship SOP from the Lake Wells project, extracting it from potassium-rich underground brines. The company has already dug up a pilot network of ponds, which includes a large pre-concentration pond and three smaller harvest ones, where sodium, magnesium and potassium salts will crystallise. The first trade samples of three tons were obtained from the brines.
In the future, Australian Potash intends to build a full-fledged enterprise with a capacity of 150 thousand tons of the premium grade sulfate of potash per year in the first five years of operation with a subsequent increase to 300 thousand tons.
Redox has become the first Australian Potash offtake partner.