Agrimin and Newhaul launch potash haulage joint venture


Road train fleet to transport 426,000 tonnes of potash per annum

Agrimin and Newhaul launch potash haulage joint venture
Road maintenance along the route

 

Listed fertiliser development firm Agrimin and WA bulk logistics operator Newhaul have formed a joint venture, Newhaul Bulk, to service Agrimin's Mackay Potash Project.

The venture – comprising an initial 20-year span – involves extracting sulphate of potash (SOP) from WA’s Lake Mackay and transporting it about 800km to Wyndham Port, where Agrimin’s proposed shiploading facility will be located.

Newhaul Bulk will be led by Craig Mitchell, the founder and former owner of WA mining haul firm Mitchell Corp, which was acquired by Toll for $110 million in 2011.

The operation would require a fleet of about 24 road trains to move 426,000 tonnes per annum of SOP from Lake Mackay to Wyndham Port.  


Read how Toll swallowed Mitchell in 2011, here


"I look forward to working with the Agrimin team to establish a world-class logistics capability," Mitchell says.

"Early engagement has provided a unique opportunity to maximise local training and job opportunities for the remote WA towns extending from Lake Mackay to Wyndham."

Direct employment associated with the haulage operation is expected to include more than 100 people, including the development of driver training centres and job readiness programs in regional communities such as Kununurra and Halls Creek.

"Following almost a year of collaboration and stakeholder engagement, we are delighted to formally partner with Craig to establish Newhaul Bulk," Agrimin CEO Mark Savich says.

"It is clear that we share the same vision of working with regional communities to create local job opportunities for more than 100 people in relation to the haulage of Agrimin’s potash."

The haulage deal is said to deliver a lower cost for the project than traditional contracting arrangements.

"We are confident that the joint venture arrangement can deliver significant reductions in costs and risks over the life of our project, when compared to a traditional contracting model," Savich says.

"In addition, we believe partnering with an experienced trucking operator will ensure that our haulage will be undertaken in a safe, efficient and low-cost manner."

The project will benefit from Federal and State Governments funding to upgrade the Tanami Road, identified under the Roads of Strategic Importance (ROSI) scheme.

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