Koch Minerals and Trading, a subsidiary of Koch Industries, has made a $252-million investment in Compass Minerals to support phase-one development of Compass’s Great Salt Lake resource, which is estimated to contain 2.4 mMT of lithium carbonate equivalent (LCE).
Compass will use $200 million of the proceeds to advance the first phase of its lithium development project. This figure represents approximately 75% of total phase-one funding needs, including the funding required through 2024 toward the construction of a commercial-scale direct lithium extraction and lithium conversion plant at the company’s Ogden, Utah, solar evaporation facility.
Compass will use the remaining $52 million to reduce debt.
“Securing funding to aggressively pursue phase one of our lithium growth opportunity has been an important focus for our management team,” said Compass CEO Kevin S. Crutchfield. “This strategic investment will help drive our lithium project forward, strengthen our balance sheet and enhance execution capabilities across our entire platform.”
Compass Minerals expects the project’s ultimate annual production capacity to be approximately 35 kMT LCE. An initial phase-one capacity of approximately 11 kMT LCE should come online by 2025.
“Koch Minerals and Trading…will be working closely with Compass Minerals and other Koch companies to unlock a significant lithium resource at Compass Minerals’ Great Salt Lake facility and become one of the first major US-based lithium producers,” said Jon Chisholm, KM and T Vice President.
Source: Compass Minerals