Mackay Potash Project Advances with $6.4M Mining Lease Loan and State Approval

• Received Western Australian state environmental approval for Mackay Potash Project
• Western Australian Cabinet approved $6.4 million mining lease loan
• Wyndham Port granted First Point of Entry status by state and federal governments
• Strong community and Indigenous engagement underpinning project development
• Ongoing front-end engineering design and process optimisation advancing

Environmental Approval Clears Major Hurdle

Agrimin Limited (ASX: AMN) has secured Western Australian state environmental approval for its flagship Mackay Potash Project, a critical step announced on 20 January 2025. This approval follows a comprehensive assessment by the Environmental Protection Authority (EPA), which commended Agrimin's extensive environmental surveys, Indigenous consultation, and mitigation strategies. The EPA's report and ministerial statement are publicly available, marking a green light for the project to proceed within Western Australia.

The Mackay Potash Project, located on Lake Mackay, the world’s largest undeveloped potash-bearing salt lake, aims to produce Sulphate of Potash (SOP), a premium fertiliser critical for global food security. Agrimin’s approach utilises sustainable brine extraction and solar evaporation, positioning the project as a low-carbon alternative to traditional, energy-intensive Mannheim process SOP production.

Government Support and Infrastructure Advances

Complementing the environmental milestone, the Western Australian Cabinet approved a $6.4 million mining lease loan to Agrimin, designed to offset upfront mining lease costs and demonstrate strong state government backing. Additionally, Wyndham Port has been designated as a First Point of Entry (FPOE) by both Western Australian and Commonwealth governments, enhancing export logistics and enabling efficient import of construction and operational materials.

This port status, combined with a planned sealed transport corridor, significantly de-risks the project’s supply chain and supports reliable long-term operations. Agrimin’s strategic infrastructure planning reflects a clear focus on operational resilience and cost efficiency.

Engineering Progress and Process Optimisation

Since completing the Definitive Feasibility Study in 2020, Agrimin has advanced its Front End Engineering Design (FEED), incorporating extensive testwork to refine process flowsheets and equipment selection. Notably, additional testwork addressed the conversion of Leonite to Schoenite, a key mineral processing step, ensuring consistent SOP production quality.

Collaborations with industry leaders such as Veolia Water Technologies and FLSmidth have validated flotation and crystallisation processes, reducing technical risks ahead of a Final Investment Decision (FID). The project’s hybrid power solution, integrating diesel, solar, wind, and battery storage, targets over 80% renewable energy penetration, underscoring Agrimin’s commitment to sustainability.

Community Engagement and Indigenous Partnerships

Agrimin continues to foster strong relationships with Indigenous communities, including the Kiwirrkurra Rangers and Traditional Owners, through environmental monitoring workshops and employment initiatives. The project is expected to generate around 200 direct operational jobs and support over 600 regional supply chain roles, delivering significant socio-economic benefits to Central Desert and Kimberley regions.

While the company withdrew certain tenement applications in the Northern Territory and Lake Auld areas following community feedback, it remains focused on advancing its core Mackay Potash Project with full Indigenous consent and support.

Corporate and Financial Highlights

As of 31 December 2024, Agrimin held a cash balance of $1.7 million, excluding a subsequent $0.7 million R&D tax refund. The company also received the final $0.4 million payment under the Supply Chain Resilience Initiative grant, supporting critical supply chain improvements. Agrimin’s 40% stake in Tali Resources Pty Ltd was valued at $46 million as of mid-2024, reflecting ongoing exploration potential in the West Arunta region.

Board changes included the appointment of Mr Lee Bowers as non-executive chair, succeeding Mr Alec Pismiris who retired in November 2024, signaling continuity in leadership as the company advances toward project execution.

Looking Ahead

Agrimin is now focused on securing Commonwealth environmental approval targeted for the first half of 2025, finalising remaining permits, and progressing funding discussions with strategic partners. The company’s methodical approach to engineering, approvals, and community engagement positions the Mackay Potash Project as a potentially transformative supplier in the global SOP market, aligned with rising food security demands and sustainability imperatives.

Bottom Line?

With state approval and government-backed funding secured, Agrimin is poised to advance the Mackay Potash Project toward a pivotal Final Investment Decision.

Questions in the middle?

• When will Commonwealth environmental approval be granted, and what conditions might it impose?
• What are the timelines and terms for potential strategic partnerships and project financing?
• How will ongoing Indigenous and community engagement shape project development and operational planning?