Agrimin (ASX:AMN) will be able to export future sulphate of potash (SOP) products through the Wyndham Port, after the Western Australia and Federal Governments granted it first point of entry status.
The designation allows international vessels and goods to enter the port and, critically, will facilitate the import and export of sea containers through the installation of supporting infrastructure.
Agrimin, which has a market capitalisation of $46.27 million, has been collaborating with the state and federal governments, industry bodies, and other potential future port users to advocate for the important status at Wyndham as it advances the Mackay Potash Project in Western Australia.
CEO Debbie Morrow says Wyndham offers the most proximate port for Agrimin to export its targeted future production of use-ready SOP from Lake Mackay.
“Designation of Wyndham Port as a first point of entry is expected to bolster export optionality with higher contained loads,” Morrow says.
“Critically, it provides Agrimin with the opportunity to import construction and operations equipment, materials, fuel and consumables via Wyndham — a dynamic that offers significant de-risking and reliability enhancement over project life.
“Coupled with the planned fully sealed transport corridor, it is designed to minimise reliance on unsealed roads and significantly longer transport options.”
Morrow notes the company is proposing to build a 346km haul road, which has potential to stimulate regional development and employment opportunities along the planned contiguous 941km sealed transport corridor.
To support this strategy, Agrimin, alongside its haulage joint venture partner Newhaul Bulk, has signed an option agreement to purchase three lots at Wyndham Port.
Lot 701 is planned to contain the project’s potash storage sheds, conveyor, and jetty. Meanwhile, lot 713 and 714 are planned to accommodate Newhaul Bulk’s administration office, workshop, and parts store, as well as other associated infrastructure to support the haulage operation.
Agrimin is a fertiliser-focused company that is developing the Mackay Project which sits on Lake Mackay in Western Australia — which is the world’s largest undeveloped SOP brine deposit and contains a drainable mineral resource of 123 million tonnes of SOP.
The project is projected to be among the world’s lowest-cost producers of SOP. The project’s Definitive Feasibility Study economics reveals a post-tax net present value of US$655 million and an internal rate of return of 21%.
SOP is a low-chloride, premium potash fertiliser which is considered essential for high-value chloride intolerant crops such as many fruits, vegetables, and tree nuts.
Write to Aaliyah Rogan at Mining.com.au
Images: Agrimin
