central australian potash explorer woos chines

Explorer Rum Jungle Resources has wooed a major Chinese company to invest in its Central Australian potash project.

Rum Jungle is exploring for potash, a vital ingredient used in fertiliser producers, at the Karinga Lakes, about 300 kilometres south west of Alice Springs near Erldunda.

It has just signed an agreement with major petroleum and chemical company, Chinese International Chemical Consulting Corporation (CICCC) to fund a pre-feasibility study for the project.

Managing director David Muller says the study is expected to take about six months.

"It's a huge step forward to have the leaders in the world of producing potassium sulphate to want to get involved in the project," he said.

"I don't think many Chinese companies have done feasibility studies or pre-feasibility studies on Australian mining properties.

"CICCC consult to over 20 countries around the world, and in the last seven of China's five-year-plans they have been responsible for the petroleum and chemical industry plans.

"They're expected to visit the project in March.

"It will include about ten people; economists and engineers."

Mr Muller says they exact size of the investment is commercially sensitive.

Rum Jungle Resources has also applied for exploration licenses on Lake Amadeus, west of Yulara, and Lake Torrens in South Australia.

Mr Muller says he hopes the Karinga pre-feasibility study will lead to further investment in the project and surrounding tenements, pending approvals.

"If the Karinga Lakes prove to be positive then there's still vast opportunities for a much bigger project in Lake Torrens, Lake Mackay, and perhaps Lake Hopkins."

http://www.abc.net.au/news/2014-01-09/chinese-investor-rum-jungle-potash/5191154