Struggling potash play Kalium Lakes reworks agreement with Germany-based contractor Ebtec for Beyondie plant

Kalium Lakes has reworked an engineering and services contract with Ebtec for its Beyondie plant after the struggling potash player was suspended from trading last month. Shares in Kalium have not traded since June with Argonaut appointed that same month to lead a strategic rethink of the company. That came after the company spent nearly $300 million attempting to get its Beyondie salt-of-potash plant — which has been beset by delays — off the ground. On Monday, Kalium said it had renegotiated an existing design and engineering agreement with Ebtec, with Kalium to receive supply and the title to two heat exchangers recently added to the plant. Ebtec in turn will receive a new agreement to continue providing technical services to the company. Kalium said the new contract included a release from “any claims in connection” with the original agreement for both parties. As part of the revised arrangements, Kalium will receive about $2.8m from Ebtec, with approval given by the Northern Australian Infrastructure Fund and KfW — the company’s senior lenders — for a drawdown of about $1.95m to be received by Ebtec and paid back to Kalium. In turn, $400,000 will be set aside in escrow and 17.7m performance rights issued to Ebtec pending the plant achieving a simplified performance test. Ebtec managing partner Markus Pfänder said he remained confident in achieving the design parameters for the plant, while Kalium acting chief executive Jason Morin said “commercial clarity” between the two parties meant the two could now work towards reaching nameplate capacity for the Beyondie plant.