Potash West NL has a vertical integration plan to produce phosphate and potash products. PWN sees the Dandaragan Trough (north of Perth, Western Australia) as having fundamental cost advantages to delivery into the Asian markets, but recognizes other markets may be better served by local production. PWN has built a strong team with an expertise base in fertilisers and continues to search for synergistic opportunities to add the value of the Company’s assets.
The Company has entered into an agreement with private interests to earn into a joint venture company East Exploration, focused on developing high grade potash deposits in Germany. This potentially provides an opportunity to deliver potash products into European markets more favourably than can be achieved from the Company’s Western Australian deposits.
The Joint Venture group (East Exploration Pty Ltd [EE] and its 100% owned subsidiary, East Exploration Gmbh, [EEG]) have applied for exploration licences for potash in established potash producing areas in South Harz, Thuringia, Germany.
This is a terrific opportunity for Potash West to expand its global presence by establishing a foothold in the European potash market. This will give the Company potential to produce from areas that would not be as well serviced by production from its Dandaragan Trough project.
Figure 1: South Harz Project location