Allens has advised the Northern Australia Infrastructure Facility (NAIF) on the completion of a loan facility of up to $74 million to support the development of the Beyondie Sulphate of Potash (SOP) Project in Western Australia. Funding will enable Kalium Lakes Limited (Kalium) to commence construction of a 78km gas pipeline, gas fired power station and supporting infrastructure.
Located 160 km south east of Newman, the Project aims to produce SOP, a high-yield, premium fertiliser, for domestic and international sale.
The loan is comprised of a $48 million Infrastructure Development Facility and up to $26 million for a Project Development Facility. The long tenor and concessional terms of the Infrastructure Development Facility allow Kalium to bring forward the construction of the Project, generating significant cost savings.
The loan from NAIF is in addition to $102 million of debt facilities from KfW IPEX-Bank and proceeds from a $72 million equity raising.
‘We were delighted to advise NAIF on financing the Beyondie SOP Project, Australia’s first Sulphate of Potash project, which ensures that Kalium is fully funded to commence construction and expedite production of SOP. 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,’ said lead Partner Nicholas Creed.
‘We look forward to continuing to work with NAIF as it continues its work to finance infrastructure in Northern Australia,’ he said.
The Allens team advised on all aspects of the financing.