Family office of billionaire Czech mining magnate cranks out first potash from troubled Lake Way project

The West Australian, Adrian Rauso, 23 July 2024                  Link to the original article

The family office of a Central European billionaire credits a new evaporation technique for resuscitating a potash mine near Wiluna that was submerged in debt.

Sev.en Global Investments — an entity controlled by ultra-rich mining tycoon Pavel Tykač — announced it had produced its first sulphate of potash (SOP) from the Lake Way operation about 15km south of Wiluna in the Goldfields region.

Sev.en, which is headquarted in the Czech Republic capital of Prague, said Lake Way is “tracking well” towards full commercial operation.

Mr Tykač’s investment vehicle bought Lake Way for undisclosed sum in October 2022, a year after former owner ASX-listed Salt Lake Potash collapsed into the arms of administrators with debts surpassing $160 million.

The Czech billionaire wants Lake Way to yield over 200,000 tonnes of SOP annually and has so far tipped in more than $200 million to develop the project.Pavel Tykac Credit: Supplied

Sev.en states the installation of new solar evaporation flotation units in the process plant “have been key to managing the diverse feedstock” from the pond network.

Mark Sykes, Sev.en’s Australian country manager, says the Lake Way development has faced and overcome “several complex challenges” in reaching the first production milestone.

“This important step confirms (the company’s) ability to conceptualise, design, construct, and operate the SOP mining and production facility at Lake Way to achieve world-class sulphate of potash,” he said.

“We are proud of the entire team, who have demonstrated incredible commitment over the years as we pursued this key milestone.”

SOP is a premium fertiliser product touted as being more water efficient for crops than traditional fertilisers. But the product has struggled to gain a foothold in the global agricultural market and subsequently WA’s suite of SOP developers have floundered.

Adding to the market troubles, technical problems have plagued WA SOP projects — notably Kalium Lakes’ Beyondie operation — which earlier this year was essentially sold for scrap via auction.

Mr Tykač has a net worth of about $11.6 billion and is known for delving into risky and unloved commodities.

In recent years he has made a string of major investments in coal miners over east.