Wedoany.com Report-Oct. 25, Agrimin has announced its decision to withdraw from the Mackay potash project in Western Australia following a strategic review of the project’s viability. The review, initiated by the board in February 2025, assessed the prospects of the project amid a challenging capital markets environment for Australian sulphate of potash (SoP) developments.

Agrimin is shifting its focus towards exploring non-potash minerals in the West Arunta region.

The board concluded that further investment in Mackay does not align with the best interests of the company and its shareholders. Despite receiving environmental approval from the Western Australia state government in January 2025, factors such as the lengthy approval process, rising inflation in the mining sector, and high operational costs have reduced the appeal for potential funders.

The project covers more than 3,000 square kilometers, with associated expenses for tenement rents and shire rates posing a significant medium- to long-term financial challenge. During the review, Agrimin did not receive any third-party offers to purchase or fund the project. As a result, the company will exit Mackay, which involves surrendering exploration licences covering the majority of brine-hosted potash minerals. Agrimin will also withdraw its mineral resource and ore reserve statements related to the project.

The company stated that it will continue to fulfil environmental and native title obligations, with ongoing rehabilitation activities conducted in consultation with native title holders. Discussions will also commence to responsibly conclude the Native Title Mining Agreement associated with Mackay. Deferred 2025 tenement rents are scheduled for payment in January 2026.

Agrimin is shifting its focus toward exploring non-potash minerals in the West Arunta region, retaining portions of its exploration licences that still hold untapped potential. The company is also considering expanding its presence in other mineral-rich areas across Australia.

In addition to its exploration activities, Agrimin holds a 40% stake in Niobium Holdings, which owns an approximate 11% interest in WA1 Resources, and an estimated 27% shareholding in Tali Resources. The company plans to protect and enhance the value of these significant non-liquid investments while refocusing operational priorities.

The decision to exit Mackay reflects a strategic realignment aimed at optimizing capital allocation and concentrating on projects with stronger financial and development prospects. Agrimin emphasizes its commitment to responsible project closure and maintaining stakeholder engagement during the transition.

Through this refocused approach, Agrimin intends to leverage its existing assets and expertise to explore high-potential mineral opportunities, ensuring long-term growth and value creation for shareholders while maintaining compliance with regulatory and environmental obligations in Australia.