Australian Potash Limited (ASX: APC) has signed a long- form binding agreement with giant Japanese trading house Mitsui & Co. for the supply of 30,000 tonnes per annum (tpa) of its trademarked K-Brite sulphate of potash from the Lake Wells Sulphate of Potash Project (LSOP) in Western Australia.
This is the third agreement executed in the company’s offtake programme and covers the distribution of K-Brite through Asia, excluding China. APC now has agreements in place for 100,000tpa of offtake across Australia, New Zealand, China and Asia, out of its total expected production of 150,000tpa.
Managing Director and CEO, Matt Shackleton, said the company is now in advanced discussions with further Tier 1 offtake partners covering Europe and the Americas.
The relationship with Tier 1 Global fertiliser distributor Mitsui & Co. (Asia Pacific), reflected in this long-form binding offtake Agreement, opens the Asian ex-China fertiliser markets to the K-BriteTM and Australian Potash brands,” Mr Shackleton. Said.
“Mitsui & Co. are a titan in the world’s major fertiliser, logistics and distribution sectors, and the marketing and distributorship of SOP is integral to their brand presence in Asia.
“It is enormously gratifying that APC’s K-Brite brand will be traded through the Mitsui network in these lucrative and growing Asian markets.
“We are now working to finalise the last part of the Offtake Program, which we expect to update shareholders on shortly. In addition to that, we continue to progress along the Approvals Pathway, with firm dates now agreed with the EPA, and the Financing Program.
“This quarter will be a very fruitful period for the Company’s shareholders and stakeholders and the development of the Lake Wells SOP project.”
K-Brite is a registered trademark brand of Australian Potash Limited (ASX: APC), representing the premium Sulphate of Potash (SOP) to be produced from the Company’s flagship Lake Wells Sulphate of Potash Project (LSOP).
APC holds a 100% interest in the LSOP, located approximately 500kms northeast of Kalgoorlie, in Western Australia’s Eastern Goldfields.
Following the release of the Definitive Feasibility Study (DFS) in August 2019iii, APC is focused on the Front-end Engineering Design (FEED) Study, finalising offtake discussions and securing financing to develop the LSOP.
The Lake Wells project is located approximately 500 km northeast of Kalgoorlie in the north-Eastern Goldfields.