Other Elements and Materials

Salt Lake Potash selects GR Engineering for $107m Lake Way contract

Salt Lake Potash selects GR Engineering for $107m Lake Way contract
Mining News Pro - Salt Lake Potash has awarded GR Engineering Services with two construction contracts for the Lake Way project in the Goldfields region of Western Australia.

According to Mining News Pro - GR Engineering will build both the process plant and non-process infrastructure at Lake Way.

The first contract, covering engineering, procurement and construction (EPC) at Lake Way, is valued at $85 million.

It covers plant, labour, materials and construction services for the process plant.

The second contract, which is worth $22 million, will involve engineering, procurement and construction management (EPCM) for both Lake Way’s process plant and other infrastructure.

Salt Lake Potash chief executive officer Tony Swiericzuk said the Lake Way project’s works had been on schedule, which had driven further confidence in the project.

“We are very pleased to have executed these contracts with GRES (GR Engineering Services) who have been a critical contracting partner by our side throughout the design development of the Lake Way processing plant and off-lake infrastructure since early 2019,” he said.

“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.”

The Lake Way project’s capital budget sits at $264 million, marking a $10 million increase to the bankable feasibility study capital budget published in October last year.

“We are extremely pleased to have been engaged to play a key role in the delivery of the process plant and non-process infrastructure for the Lake Way Project,” GR Engineering managing director Geoff Jones said.

“We look forward to continuing to work collaboratively with Salt Lake Potash to deliver safe and successful outcomes. GR Engineering looks forward to Salt Lake Potash emerging as a significant new Australian SOP Producer.”

The Lake Way project is forecast to produce 245,000 tonnes of sulphate of potash (SOP) per annum and has a 20-year mine life.

The process plant has been designed by GR Engineering and Wood Group, and will operate as a reverse flotation, conversion and re-crystallisation process.

Bulk earthworks have been completed at Lake Way, with the project remaining on target for sales in the first quarter of 2021.

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