Agrimin backs out of buying collapsed potash peer Kalium Lakes and its Beyondie project

Agrimin has walked away from a deal to buy Kalium Lakes, throwing a sale for the collapsed potash play into further disarray. Receivers from McGrathNicol had announced in September that Agrimin would buy Kalium — which fell into administration in August — with the intention of restarting work at the company’s Beyondie sulphate-of-potash project in mid-2024 and pursuing further expansion of it in the second half of 2025. That deal will now be canned, with receivers on Wednesday saying Agrimin had backed out of the sale due to what was described as a “non-satisfaction of a condition precedent”. Reporting by administrators KPMG had previously indicated Agrimin’s deed of company arrangement was valued at $45 million. That agreement would have required the approval of the Federal Government’s Northern Australian Infrastructure Facility and German financier KfW-Ipex, two of Kalium’s most significant creditors. In its first comments since the deal was confirmed, Agrimin said it was “disappointingly” walking away from the sale. “Agrimin remains committed to delivering successful outcomes to the WA (sulphate-of-potash) industry, including progressing the development of its globally significant Mackay potash project,” it said. Beyondie, located about a two-hour drive south of Newman in WA’s Pilbara region, has for years been beset with problems. While the SOP project — one of many in the State yet to be developed — has been billed as capable of producing between 100,000 and 120,000 tonnes per annum of fertiliser throughout a 30-to-50-year mine life, Kalium ploughed at least $300m into the project before going bust. Wednesday’s news will also be a blow for creditors, who are collectively owed $209 million. KPMG has previously estimated they will recover only about a fifth of that sum — $45m — with NAIF, which lent the potash play $83m, among those on the hook. Agrimin previously went into a trading halt with the intention of raising capital to fund the Kalium purchase. Shares in the company last traded at 20¢ each. McGrathNicol declined to provide further information on the sale when contacted. A spokesman for Agrimin has been sought for comment.