Salt Lake Potash (SO4)  is a developing salt-lake brine Sulphate of Potash (SOP) fertilizer producer, with a multi-lake portfolio.

It intends to be the first SOP operation in Australia, and in a pivotal agreement, has entered a Memorandum of Understanding with Sinofert, China's leading fertiliser supplier and distributor.

The Offtake Agreement will provide Sinofert with sales and offtake rights for up to 50% of all Sulphate of Potash (SOP) production from the Goldfields Salt Lakes Project, for distribution into China, with an initial term is for 8 years, from 1 January 2020. 

This follows a previous Offtake Agreement with Mitsubishi Corporation for sales and offtake rights of from the Demonstration Plant at the Goldfields Salt Lakes Project for up to 50% of the SOP production.

Below is the Vox Markets Podcast which features Salt Lake Potash CEO Matt Syme speaking about the update:

Sinofert is a HKEX listed company, majority owned by Sinochem Corporation, a Chinese State Owned Corporation, well positioned to supply the market, handling 13 million tonnes of fertilisers each year.

The demand for high value fertiliser, such as Sulfate of Potash, is very promising, driven largely by the growing middle class in emerging economies. The fertilizer is low in chloride and high potassium, which is suitable for chloride sensitive crops such as fruits and nuts. 

This is an area with strong demand growth as the burgeoning middle class in emerging economies require more and more food resources.

Salt Lake Potash CEO Matt Syme said: "We are very pleased to have taken this important step to partner with Sinofert… the leading participant in the world's largest fertiliser market, where more than half of the world's SOP is both produced and consumed."

The company intends to finish the construction of its demonstration plant in 2019, and release first output and sales of the fertilizer in early 2020 in line with the agreement. 

Sulphate of Potash is the world’s most sustainable fertilizer, which aligns the company well with the growing demand for Environmental, Social, and Governance investing for positive impact. 

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