Australian group Leichhardt expands its salt portfolio with US$251M purchase of Lake MacLeod from Dampier Salt 

Privately owned Leichhardt Industrials Group has acquired a strategic salt asset in Western Australia with the acquisition of Dampier Salt’s Lake MacLeod salt and gypsum operations. The Lake MacLeod solar salt deposit is located within Baiyungu country in the Gascoyne region of Western Australia, 70km north of the town of Carnarvon. The sale includes ~1.5Mtpy salt and ~ 1Mtpy gypsum operations as well as a deepwater port at Cape Cuvier, which will be used for salt exports.

Leichhardt has still to complete certain commercial and regulatory conditions, but this is expected to occur by the end of the year. The company has committed to the continuous operation of Lake MacLeod and is retaining all of the 130-strong workforce.

The acquisition gives Leichhardt an immediate foothold in the salt industry by buying an established producer. At the same time, the company is developing its Eramurra solar salt project located 55km southwest of Karratha, also in Western Australia which is aiming at a base case production of 5.3Mtpy. A bankable feasibility study on Eramurra is currently underway.

Dampier Salt is majority-owned by mining giant Rio Tinto, which holds a 68% share, with the other two shareholders being Marubeni Corp (22%) and Sojitz Corp (10%). Dampier still owns two other salt operations in Dampier and Port Hedland, Western Australia, which were not part of the deal. Rio Tinto’s Managing Director Port, Rail & Core Services, Richard Cohen, said: “The sale of Lake MacLeod will enable Dampier Salt to focus on enhancing operational efficiencies at its remaining two Pilbara operations while allowing the new owner of Lake MacLeod to maximise its potential.”