ASX-listed Agrimin Limited has decided to withdraw from its Mackay potash project, in Western Australia, following a strategic review that concluded continued investment in the sulphate of potash (SoP) project is no longer in shareholders’ best interests.

The review, initiated in February, assessed the project’s prospects amid a challenging capital markets environment for Australian SoP developments. Agrimin said on Thursday that consultations with stakeholders had been constructive and reflected a clear understanding of the difficult funding landscape for evaporative potash projects.

The company’s board endorsed the review’s findings that inflationary pressures, a drawn-out approvals process and the failure of several Western Australian SoP projects had “dramatically eroded the appetite of potential funders, both conventional and strategic, for such projects".

Agrimin also cited the high long-term holding costs associated with its 3 000 km² tenement package and the absence of any offers from third parties to fund or acquire the project.

As a result, Agrimin will begin a withdrawal process involving the full or partial surrender of several exploration licences covering the brine-hosted potash deposits. The company would also withdraw its existing mineral resource and ore reserve statements for the project.

Agrimin said it would continue to meet its environmental and native title obligations, with rehabilitation activities ongoing in consultation with native title holders. The company also plans to settle deferred 2025 tenement rents in January 2026.

Looking ahead, Agrimin would shift its focus to exploration for non-potash minerals in the West Arunta region, retaining licences covering untested strike along trend from WA1 Resources’ Luni niobium deposit. The company noted that new airborne magnetic and radiometric surveys by the Geological Survey of Western Australia were expected to improve data quality across the region.

Agrimin, which had $2.3-million in cash at the end of September, also holds strategic stakes in WA1 Resources (indirectly through Niobium Holdings) and Tali Resources.

The company said it remained focused on pursuing new exploration opportunities and continuing to deliver long-term value growth for shareholders.