Reward Minerals to acquire Beyondie potash plant

Reward Minerals (ASX: RWD) has entered a $2.13m binding asset sale agreement with Kalium Lakes (ASX: KLL) for the Beyondie potash plant.

This follows Reward’s previous purchase attempt for the plant in early 2024, with the company terminating the transaction, citing insufficient funds.

Kalium’s operations at the plant ceased in September 2023, with the site transitioning to care and maintenance ahead of the sale.

Reward will manage care and maintenance activities at the site until it is able to relocate the plant. Reward will also be responsible for dismantling and removing the assets from the plant area and rehabilitating the plant and facilities area.

This is a notable transaction, as prices for sulphate of potash (SOP) — the only potash-based fertiliser suitable for crops such as vegetables and fruiting plants — continue to see a steady upward trajectory, according to Australian Potash (ASX: APC).

Australian Potash says that although China is currently the largest SOP producer, WA is disrupting the premium market with more environmentally friendly methods, such as solar evaporation of brine and salt reaction.

The acquisition is also expected to enhance efforts at Reward’s Carnarvon potash plant, with the company set to update the site’s engineering scoping study.

Reward chief executive Lorry Hughes says the acquisition is another key step toward commercialisation of the company’s processing technology IP that has the potential to transform the SOP industry.

“Reward is delighted to announce this strategic, low cost and potentially transformative proposed acquisition that reinforces the company’s commitment to pursuing opportunities which exist for recovery of potassium sulphate (Potash, SOP) from WA solar salt operations,” he said.

“Reward aspires to use its technologies and experience in combination with components of the Beyondie plant to establish a new facility at significantly reduced capital cost relative to that indicated in Reward’s September 2023 Engineering Scoping Study 1 (ESS) for its Carnarvon potash project (CPP).

“The 2023 ESS demonstrated that a technically sound and commercially attractive operation could be established utilising the Reward Process and reject brines (Bitterns) from typical seawater solar salt operations that exist at several established or proposed development sites in Northwest WA between Shark Bay and Port Hedland.

“The established salt operations have been operating continuously for up to 50 years using seawater as feed brine.

“If Reward can establish a SOP operation in partnership with one of these operations, we believe it will change the landscape of the SOP industry in Australia.”

The transaction does not include acquisition of the power station, gas or brine supply facilities, evaporation ponds, accommodation camp and other minor items of the greater project.