WA Kaolin Ltd (ASX:WAK) has signed a 15-year agreement with the Western Australian Water Corporation to ensure the supply of fresh water for its 100%-owned Wickepin Kaolin Project.
Wickepin in Western Australia is one of the world’s largest remaining primary resources of premium quality kaolin.
The supply of fresh water will come from a new lateral pipeline connection to the existing water corporation pipeline that runs along the Williams-Kondinin Road.
According to the company, this water will be critical for the processing of kaolin, amenities at the mine site, fire management and dust suppression.
Reliable water supply “essential”
WA Kaolin CEO Andrew Sorensen said: “We are excited to have locked in another long-term supplier agreement for critical infrastructure at our Wickepin Kaolin Project.
“A reliable water supply is essential for the production of kaolin and the operation of our processing plant once we commence production.
“We remain within budget with the ongoing Stage 1 work program and look forward to keeping you updated on our progress.”
The agreement will start immediately following the installation of a metering point by the Water Corporation, which is expected to take place in October 2021.
During the period of this agreement, the corporation will make available up to 49,000 litres of water per day or 343,000 litres per week to WA Kaolin.
As per the agreement, the company will pay a one-off upfront capacity contribution and then a monthly variable charge depending on the volume used. Rates are subject to annual review, with no minimum monthly requirement.
The Wickepin Project
The company acquired the Wickepin Project in 1999 from Rio Tinto which, through exploration, had discovered and drilled out a mineral resource and commissioned engineering and feasibility studies.
Since then, WA Kaolin co-founders and owners have invested more than $42 million to develop and progress the project.
The company is on target and within budget with the ongoing stage-1 work program, designed to develop a kaolin processing plant with an annual production capacity of more than 200,000 tonnes of kaolin by the end of 2021.