Leigh Creek finds offtake partner in Korean construction company
PERTH (miningweekly.com) – ASX-listed Leigh Creek Energy has inked a urea offtake heads of agreement (HoA) with South Korean construction major Daelim.
The HoA covers a minimum of 500 000 t of granular urea a year, for a minimum period of five years, accounting for all of Leigh Creek’s export urea from its Leigh Creek project, in South Australia.
“Its no coincidence that immediately following travel borders being opened up that we were able to travel to Korea and hold very positive meetings with Daelim,” said Leigh Creek executive chairperson Justyn Peters.
“This HoA is important to our company as it sets out a clear process that mirrors the process used to sign the engineering, procurement and construction contract with Daelim. The HoA, with an exclusivity period, allows both parties to put in the time, energy and cost to come to a definitive agreement without the risk of, to be frank, Daelim being gazumped by another party. After meetings with Daelim, Leigh Creek was sufficiently confident to grant an exclusive period.”
Peters said that if signed, this would be the first and last offtake agreement that would be needed in order to secure funding for the Leigh Creek project, however, it would not exclude the company from securing other offtake agreements, and Leigh Creek was still in discussions with other parties.
A 2020 prefeasibility study into the Leight Creek project estimated that it would require a capital investment of A$2.6-billion, to support an annual plant capacity of one-million tonnes a year, with scope to increase urea production capacity to two-million tonnes a year. The project is expected to have a commercial life of some 30 years.
Comments
Research Reports
Projects
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
