A&O plays key role in securing project financing for Australia’s first sulphate of potash project
06 February 2020
A team from Allen & Overy’s Perth office has advised Germany’s KfW IPEX-Bank GmbH (KfW) and the Northern Australia Infrastructure Facility (NAIF) on a AUD175 million project financing arrangement for a potash project in Western Australia’s Pilbara region.
The funding for the Beyondie Sulphate of Potash Project (BSOPP), owned by ASX-listed exploration and development company Kalium Lakes, will progress the 90 ktpa project towards a scheduled production date next year. Part of the funding from KfW is supported by a guarantee from the German Government Export Credit Agency, Euler Hermes.
Located 160km south east of the town of Newman, BSOPP is planned to be the first sulphate of potash production facility in Australia. German chemical company K+S has a 10-year contract to buy sulphate of potash from the project once production commences, which is expected to deliver approximately AUD650 million in revenue.
The A&O team advising KfW and NAIF was led by Partner Peter Wilkes, supported by Partner Goran Galic, Senior Registered Foreign Lawyer Jessica Stratford, and Associate Alexandra Ioppolo.
Peter Wilkes said the team was proud to have played a key role in supporting the BSOPP project.
“Sulphate of potash is a premium fertiliser and in high demand globally, but there are currently no local producers in Australia,” he said.
“We were pleased to play a part in supporting this important project – one that holds great significance for the mining and resources sector in Australia.”
For further information, please contact Jessamy Field, email@example.com, on +6129373 7700.
For further information on the project, please visit the Kalium Lakes Project website.