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Salt Lake Potash awards Lake Way contracts to GR Engineering

07:49, 15th June 2020
Francesca Morgan
RNS Newswire
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Salt Lake Potash (AIM:SO4) FOLLOW has awarded an Engineering, Procurement and Construction (“EPC”) and an Engineering, Procurement and Construction Management  (“EPCM”) contract to GR Engineering Services.

The dual-listed company, which is focused on its Sulphate of Potash assets in Australia, said these combined contracts represent more than 40% of the total project capital requirement.  

GR Engineering Services will help create and construct the process plant and non-process infrastructure (NPI) at the group's Lake Way Project in Western Australia.  
 
The EPC contract involves the provision of plant, labour, materials and construction services for the plant and NPI valued at $85m while the EPCM contract involves the provision of services for the management of the process plant valued at $22m. 
 
“The finalisation of these major Project contracts and the substantial engineering and procurement activity to date has further de-risked the Lake Way Project execution and confidence around the capital budget,” said Tony Swieticzuk, CEO of Salt Lake Potash. 
 
Shares in Salt Lake Potash closed at 29p on Friday afternoon. 

SO4 price chart

The group said that the project capital budget has increased marginally from $254m to $264m, including an unallocated A$18m contingency. 
 
Bulk earthworks for the site are also now complete, while major vendor procurement is 77% complete and off- site fabrication activities are substantially progressed. 
 
Construction of the permanent 100-person village was finalised earlier in April, with an additional 160 rooms also now complete in preparation for construction ramp up. 
 
The EPCM and EPC contracts are conditional on financial close and GRES continues to advance project delivery under the existing early services arrangement. 
 
The Lake Way project remains on schedule for first sales in the first quarter of 2021. 
 
Follow News & Updates from Salt Lake Potash here: FOLLOW

 

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