Agrimin Updated On Its Proposed Logistics Chain For The Mackay SOP Project

  • Mar 28, 2019 AEDT
  • Team Kalkine
Agrimin Updated On Its Proposed Logistics Chain For The Mackay SOP Project

Agrimin Limited (ASX: AMN) updated the market on 28 March 2019, about its proposed logistics chain for the Mackay Sulphate of Potash (SOP) Project in the West Australian region. All the data obtained from the latest fieldwork programs and the engineering design phase for road works have begun on time for the Definitive Feasibility Study.

AMN has its strategic focus on its wholly owned Mackay SOP Project. The company is anticipating that deposits at SOP across the West Australian region would turn out to be a significant source to meet the rising global demand of fertilizers. Its subsidiary includes of Agrimin Potash Pty Limited.

Significant development has been attained towards the establishment of a new transport corridor. It is an essential step for the successful implementation of the AMN’s plans for a large-scale and long-life operation with potash, which is shipped through Wyndham to markets of the world. The corridor can smoothen a mine-to-port logistics chain which involves bulk haulage and handling of minimal materials work, which in turn could enable very cost-effective transportation of huge tonnages of potash.

The entire haulage distance calculated from the Project site to Wyndham Port stands at 980 km. The establishment of the transport corridor consists of 2 discrete part of road works:

Firstly, the 385 km haul road is being planned to be built, to link the Project site to the Tanami Road. Recently, the AMN granted the design package for this haul road to Coffey Services Australia. Earlier, the AMN had concluded a widespread 1 km test pit program along the proposed haul road alignment. The outcomes of the geotechnical test work from these test pits have been obtained. It signifies a good construction environment, and it has been detected with suitable borrow materials. Also, AMN concluded a LiDAR survey on the proposed haul road alignment, and this data has also been processed and obtained.

Secondly, the company has planned to upgrade 205 km of Tanami Road, so that it enables the AMN’s proposed haulage operations. Recently, AMN granted the design package for the upgradation of the Tanami Road to Greenfield Technical Services.

The Northern Australia Infrastructure Facility (NAIF) Board showed its interest in investigating the prospect for NAIF support, for the Project in reference to AMN’s proposed infrastructure.

The SOP Project is expected to achieve the production target of 426,000 tonnes of SOP on a yearly basis. For that, AMN has strategized to utilize a dedicated fleet of quad road trains, which would be loaded with bulk SOP through a product load-out facility at the process plant. The corridor would also aid the trucked LNG fuel supply to the project site. AMN is moving ahead in its discussions with LNG suppliers.

The company has plans to take up heritage surveys and go ahead with the discussions for land access agreements this year. AMN’s environmental consultants at Stantec have concluded a reconnaissance trip along the haul road alignment.

In April and May this year, an array of environmental surveys is going to take place, and the company has prepared well for the surveys. These surveys would become a part of the Project’s complete environmental impact assessment procedure.

The stock of the company is currently trading at A$0.585 (as on 28 March 2019, 3:20 PM AEST).


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