Kalium Lakes awards contracts for BSOPP’s purification plant in Australia

WCN Editorial Team 27 May 2019 OCEANIA ENERGY & UTILITIES

Kalium Lakes has awarded engineering, procurement, construction management (EPCM) and commissioning contracts for the development of purification plant facilities for its Beyondie Sulphate of Potash Project (BSOPP) in Western Australia.

The company has selected the Ebtec consortium, which includes K-UTEC AG Salt Technologies and Ebner, to provide the engineering, procurement and supervision (EPS) services for the BSOPP.

The contracts will allow for early start of works with the full scope subject to final investment decision (FID). Considered to be Australia’s first sulphate of potash (SOP) production site, it is expected to begin in 2020.

All the contracts, together worth more than A$60m (£33m), are claimed to be within the budget outlined in the bankable feasibility study (BFS) and front-end engineering and design (FEED), Kalium Lakes stated.

The contracts confirm the 15-month construction schedule after the final investment decision (FID), followed by the commissioning of the project.

The companies in the consortium have previously provided similar services for a SOP plant in Austria.

Ebtec will supply the process plant and offer equipment installation supervision, followed by the commissioning of the plant.

Ebtec’s contract includes performance guarantees to ensure quality of SOP production is in line with the requirements of the K+S offtake agreement and also includes liquidated damages for performance and schedule. The contract includes a bonus arrangement.

Kalium Lakes chief development officer Rudolph van Niekerk said: “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.”

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