Australia's first sulphate of potash project gets $74m support with Allens' aid

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Allens has helped finalise a loan to support a resources project in Western Australia.

The leading firm advised the Northern Australia Infrastructure Fund (NAIF) on a loan facility worth up to $74m to support the development of the Beyondie Sulphate of Potash (SOP) Project, which is located 160km southeast of Newman.

The funding will enable Kalium Lakes to start building a 78km gas pipeline, a gas-fired power station, as well as supporting infrastructure. The Beyondie project will produce SOP, a high-yield, premium fertiliser.

The loan is composed of an infrastructure-development facility worth $48m and a project-development facility worth up to $26m. Allens said that the long tenor and concessional terms of the infrastructure-development facility leads to savings as it allow Kalium to bring forward the construction of the project.

Kalium has also secured $102m from debt facilities provided by KfW IPEX-Bank. It has also secured funds from the proceeds of a $72m equity raising.

Lead partner Nicholas Creed said that the Beyondie project is the first SOP project in Australia.

“Production is scheduled for 2020 and will make Kalium Australia's first SOP producer – a milestone for NAIF and the country's mining and resources sector,” he said. “We look forward to continuing to work with NAIF as it continues its work to finance infrastructure in Northern Australia.”

The Allens banking and finance team also included partner Scott McCoy, senior associate John Tanner and Louise Barbato, and lawyer Alastair Henderson.