Australian Potash Ltd’s (ASX:APC) K-Brite sulphate of potash (SOP) products have been reviewed by European organic certification agency ECOCERT and classified as suitable for use in international organic farming in compliance with European regulations.

Organically certified K-Brite from the Lake Wells SOP Project (LSOP) in Western Australia will now be distributed through a take-or-pay offtake agreement with Helm AG through European jurisdictions where organic certification carries a premium.

ECOCERT is a globally recognised inspection and certification body established in France in 1991 by agronomists aware of the need to develop environmentally-friendly agriculture and of the importance of offering some form of recognition to those committed to this method of production.

The company is progressing other geographic-specific organic certification processes to be recognised in each of its current offtake geographies as a supplier of premium organic SOP for sustainable agriculture.

“Opens premium markets”

Managing director and CEO Matt Shackleton said: “Organic certification opens premium markets across the globe that demand environmentally friendly inputs.

“Our distribution partners will be able to position K-Brite into these markets, targeting premium price points across the horticultural, viticultural and flower sectors, and high-value broad-acre crops.

“The rigorous test-work program conducted through FEED demonstrates the LSOP will produce premium granulated and fertigation grade K-Brite, both additional value-adding product qualities.

“Granule hardness reduces product loss through the logistics chain, right up to end-user application. For this granular K-Brite will command a price premium to the more common standard or powdered SOP.

“Similarly, soluble K-Brite, which will go to the fertigation (spray fertiliser) market, is priced at a premium due to its applicable uses in the high-value horticultural sectors.”

As a result of the certification, shares have been as much as 6% higher to 18.5 cents intra-day, a new high of almost nine years.

Tests confirm premium granulated K-Brite

The FEED granulation process flow test-work, undertaken by FEECO International – a global leader in the manufacture of fertiliser processing equipment has also confirmed LSOP will produce a premium granulated product.

Premium granulated SOP achieves a granule hardness that minimises product loss in handling and logistics and carries an estimated premium of up to US$25/tonne.

Offtake diversity

Around 100% of the company’s DFS projected output of 150,000 tonnes per annum is now under binding take-or-pay offtake agreements.

APC’s existing marketing program covers the following jurisdictions: