Salt Lake Potash is expecting high margins from manufacturing sulphate of potash at its Lake Way project in Western Australia. The company has been working with the Australian government to develop a new process for making sulphuric acid and hopes it will be ready by mid-2017. The miner has a memorandum of understanding with Blackham Resources to build a demonstration plant, with Salt Lake Potash owning 80% of the lake while Blackham takes 20%. Additionally, an off-take agreement has been signed with Mitsubishi for 50% of all SOP produced at the demonstration plant, and it is in discussions for the remaining 50%.
Salt Lake Potash is expecting high margins from manufacturing sulphate of potash at its Lake Way project in Western Australia. Production costs will be as low as $200 per metric tonne and developing the project will cost $200m, the company said. The miner has a memorandum of understanding with Blackham Resources to build a demonstration plant, with Salt Lake Potash owning 80% of the lake while Blackham takes 20%. Additionally, an off-take agreement has been signed with Mitsubishi for 50% of all SOP produced at the demonstration plant, and it is in discussions for the remaining 50%.