Agrimin has announced its decision to withdraw from the Mackay potash project in Western Australia (WA) following a strategic review.
In February 2025, the board commenced a review to assess the project’s viability amid a challenging capital markets environment for Australian sulphate of potash (SoP) projects.
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The conclusion, supported by the board, is that further investment in the project does not align with the best interests of the company and its shareholders.
The strategic review highlighted various factors influencing this decision.
Despite receiving environmental approval from the WA state in January 2025, the lengthy approval process and rising inflation in the mining sector have diminished the interest of potential funders.
Furthermore, the expenses associated with tenement rents and shire rates for the project’s vast land coverage of more than 3,000km² pose a substantial financial challenge in the medium to long term .
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By GlobalDataDuring the review, no third-party offers to purchase or fund the project were received.
Consequently, Agrimin is preparing to exit the project, which will involve surrendering exploration licences that encompass the majority of the brine-hosted potash minerals.
Additionally, the company is also withdrawing its mineral resource and ore reserve statements related to the project.
Agrimin aims to fulfil its environmental and native title obligations, with ongoing rehabilitation activities in consultation with native title holders.
Discussions will also begin to responsibly conclude the Native Title Mining Agreement associated with the project.
The deferred 2025 tenement rents are scheduled for payment in January 2026.
Agrimin is shifting its focus towards exploring non-potash minerals in the West Arunta region, retaining segments of its exploration licences with untapped potential.
In addition, the company is also considering broadening its presence in other mineral-rich areas throughout Australia.
Agrimin holds a 40% stake in Niobium Holdings, which in turn owns an interest of around 11% in WA1 Resources.
The company also holds an approximate 27% shareholding in Tali Resources.
Agrimin plans to protect and enhance the value of its significant non-liquid investments.
