Salt Lake Potash buoyant as lease costs slashed in Western Australia

(Sharecast News) - Salt Lake Potash enjoyed a boost on Thursday after the Western Australian State Government launched an initiative to assist the development of the potash industry in the region.The first government measure will introduce a new rental rate for potash projects, dramatically reducing the existing rate of mining leases from AU$18.70 per hectare to AU$2.32 per hectare in the first five years and then $4.64 per hectare thereafter.Mines and Petroleum Minister Bill Johnston said: "These changes will assist the development of a new industry in Western Australia, and create employment and community development opportunities, particularly in remote Aboriginal communities. Potash projects generally have a mine life that spans 30 to 40 years, so this longevity is a win for local communities and sustaining jobs."The AIM traded company said that the new initiative comes at an opportune time as it begins new developments at Lake Way, including the imminent construction of the Williamson Ponds and the 'whole of lake' resource program to enable the consideration of larger scale production scenarios.Mr Tony Swiericzuk, Salt Lake Potash's chief executive, said: "The commitment by the government towards the development of the Potash industry will provide significant benefits as we progress the Lake Way Project. We look forward to working with the government in the development of a new industry in Western Australia that will create vast opportunities to remote regions including Wiluna."Salt Lake Potash's shares were up 7.84% at 27.50p at 1307 GMT.