Australian Potash Ltd (ASX:APC) is confident about the viability of its 100%-owned Lake Wells Sulphate of Potash Project (LSOP) in Western Australia's Eastern Goldfields, as global demand for mineral fertilisers remain strong.
To that end, third parties are presently reviewing due diligence materials on the project with a view to investing in LSOP.
In a corporate update, however, the company cautioned that discussions are preliminary and there may not be any suitable investment proposals.
Federal review
Separately, the company said it has been advised by the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) that it views the LSOP development as a ‘controlled action’ under federal legislation.
This follows a third-party referral of the LSOP to the DCCEEW, over and above the Western Australian State Government’s assessment of LSOP, for which full approval was obtained in February 2021.
Federal officials have requested information from APC, and imposed a $34,000 ‘cost recovery’ to undertake their assessment of the LSOP’s development.
APC said it was not privy to the third-party referral, nor was it consulted by the DCCEEW prior to its initial ‘controlled action’ assessment.
At this stage, the company does not know what further conditions will be imposed on the project on top of those demanded by the state government.
APC is working with DCCEEW to develop an assessment plan, which will incorporate a timetable.