Kalium Lakes Limited delivers sulphate of potash to CSBP Fertilizers

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Kalium Lakes Limited has begun deliveries of Sulphate of Potash (SOP) from the Beyondie SOP mine to local WA fertilizer manufacturer and distributor, CSBP Fertilizers (CSBP), as part of the inaugural sale under its Offtake Agreement with K+S Asia Pacific (K+S).

The product is expected to ship in regular weekly deliveries over the next month as part of the first sale under the company’s 10-year off-take agreement with leading potash producer and marketer, K +S, through its Asian subsidiary, K+S. Asia Pacific Pte Ltd, in 2019.

Kalium Lakes standard grade SOP is expected to find its way to local farmers in Western Australia for the 2023 season, reducing reliance on imported SOP.

Kalium Lakes President and CEO Len Jubber said, “We are pleased to announce the loading of our first delivery of SOPs from the Beyondie SOP mine, consistent with the previous notice to shareholders that sales commercial operations were due to commence in July 2022. is a significant milestone in bringing the Beyondie SOP mine into operation as Australia’s sole SOP producer. It also heralds the start of the era of domestic SOP production in Australia, for distribution to Australian and international agricultural markets.

“Kalium Lakes would like to thank collection partner, K+S, and its local WA buyer, CSBP, for being part of the inaugural delivery of the first Australian-made SOP.”

K+S Asia Pacific Managing Director Dr. Marcus Ross said, “People say the first steps are the hardest. But the start of deliveries by Kalium Lakes is a big step towards commercial supply of SOPs in the agricultural sector. This is great news for farmers in Australia and other Southeast Asian markets. »

CSBP Fertilizers Managing Director Mark Scatena said: “As the only producer of Nitrogen, Phosphorus and Potassium (NPK) products in WA, CSBP Fertilizers (CSBP) is pleased to receive the first installment of Locally produced SOP, a key raw material in the manufacture of CSBP’s premium MacroPro Extra NPK compound fertilizer.

While CSBP has long had strong and diverse global supply relationships, local production of SOPs has the potential to improve security of supply for the WA industry, allowing CSBP to continue local manufacturing of its range of products. premium fertilizer suited to WA conditions and the requirements of WA growers. .”

Marketing update

Following the scheduled plant shutdown in August, Beyondie’s targeted ramp-up of SOP production is expected to result in the shipment of increasing quantities of SOP to interstate and overseas markets.

In the coming months, Kalium Lakes will begin development of the Koppern compaction plant which was partially commissioned in June. This should also result in higher priced granular SOPs comprising an increasing proportion of the company’s sales.

Kalium Lakes has started delivering in an SOP market that has seen prices double from their long-term average over the past 12 months. These price increases were largely the result of economic and financial sanctions against Belarus and Russia, which together account for more than 35% of the global muriate of potash (MOP) market, with MOP being the primary input in production. about half of the market. SOPs of the world.

In addition, the global supply of SOP is also reduced by Chinese government export restrictions on a range of fertilizers which were introduced in October 2021. Chinese exports of SOP for the period January to June 2022 have more than halved compared to the same period a year earlier.

Read the article online at: https://www.worldfertilizer.com/potash/01082022/kalium-lakes-limited-delivers-sulphate-of-potash-to-csbp-fertilisers/

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