Kalium Lakes Limited (Kalium Lakes) (ASX: KLL) is pleased to advise that construction works on its fully owned gas pipeline have commenced on schedule at the Beyondie Sulphate of Potash Project (BSOPP).
The scope of the gas pipeline lateral includes: an inlet station from the Goldfields Gas Pipeline (GGP) which will receive gas from a metering facility near the Kumarina Roadhouse; 79.4 kilometre of 100mm gas main line and a delivery station (which will provide the gas at controlled temperature and pressure) for both power generation and use within the SOP production facility.
The main line works are anticipated to take five months to install, which will see works complete in December 2020. Construction works for the inlet and delivery stations will be finalised after the completion of the main line. Currently, 20.1 kilometres of the pipeline path has been cleared and graded, 15.8 kilometres of pipe has been delivered and two kilometres of pipe has been placed along the roadside reserve.
The construction of the gas pipeline has been enabled through debt funding received from the Northern Australia Infrastructure Facility (NAIF).
Managing Director, Brett Hazelden, commented: 'The gas pipeline is a key enabler for the Company to benefit from low ongoing operating costs which places Kalium Lakes in the lowest quartile cost of SOP production in the world.
'The pipeline has also been sized to allow increased production from Stage 2 and potential Magnesium by-products. This valuable piece of infrastructure provides a significant long-term advantage to the BSOPP, which currently has a 30 to 50 year mine life,' he said.
NAIF was established on 1 July 2016 by the Northern Australia Infrastructure Facility Act 2016 (NAIF Act) and is a corporate Commonwealth entity. The objective of the NAIF Act is to provide financial assistance to the States of Queensland, Western Australia and the Northern Territory for the construction of infrastructure to benefit northern Australia. NAIF may approve loans to 30 June 2021 which total A$5 billion in aggregate (with loan tenors of up to the longest term of Commonwealth borrowings). https://naif.gov.au/
EDGEN MURRAY (Pipe Supply), a subsidiary of Sumitomo Corporation, is a leading global supplier of specialised products for worldwide energy and infrastructure markets. Our global distribution platform expands across the Americas, Europe, the Middle East, and the Asia Pacific region. Edgen Murray Australia provide specialised services for the manufacture and delivery of coated linepipe to Australian gas projects.
PIPECRAFT (Pipe Installation) is a Western Australian based specialist pipeline - construction and engineering contractor servicing Australia and PNG. PIPECRAFT provides a range of project management, engineering, construction, maintenance, mechanical and equipment hire services to the upstream, midstream and downstream resource, utility and energy markets.
Forward looking statements
Certain information in this document refers to the intentions of Kalium Lakes, but these are not intended to be forecasts, forward looking statements or statements about the future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of the events in the future are subject to risk, uncertainties and other actions that may cause Kalium Lakes' actual results, performance or achievements to differ from those referred to in this document. Accordingly Kalium Lakes and its affiliates and their directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of these events referred to in the document will actually occur as contemplated. Statements contained in this document, including but not limited to those regarding the possible or assumed future costs, performance, dividends, returns, revenue, exchange rates, potential growth of Kalium Lakes, industry growth or other projections and any estimated company earnings are or may be forward looking statements. Forward-looking statements can generally be identified by the use of words such as 'project', 'foresee', 'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions. These statements relate to future events and expectations and as such involve known and unknown risks and significant uncertainties, many of which are outside the control of Kalium Lakes. Actual results, performance, actions and developments of Kalium Lakes may differ materially from those expressed or implied by the forward-looking statements in this document. Such forward-looking statements speak only as of the date of this document.
There can be no assurance that actual outcomes will not differ materially from these statements. To the maximum extent permitted by law, Kalium Lakes and any of its affiliates and their directors, officers, employees, agents, associates and advisers: disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumption; do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this document, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).
Contact:
Tel: +61 (0)8 9240 3200
Email: info@kaliumlakes.com.au
KALIUM LAKES LIMITED 