The environmental and social impact assessment (ESIA) for Kore Potash PLC’s (LON:KP2) Dougou mining licence has been approved.
Approval of an ESIA is a prerequisite to commencing construction of a mining project in the Republic of Congo, Kore said.
The Dougou mining licence is adjacent to the company’s flagship Kola project.
The ESIA authorises the development of the potential mining project at the Dougou carnallite deposit and could be extended in future to include the Dougou extension sylvinite deposit.
The permitting for the development of the Dougou deposits creates the potential to use potash from these deposits to increase the production rate or extend the project life at the nearby Kola Project, currently the subject of a definitive feasibility study.
"Kore Potash's mining licences in the Republic of Congo have the potential produce potash for the global market at very low cost for generations, and it is pleasing to have achieved another important milestone with ESIA approval for the Dougou mining licence,” said Brad Sampson, the chief executive officer of Kore.
"The company's key strategic ambition is to bring the flagship Kola project into production, and it is important to keep the potential scale of the potash basin in mind.
"Following completion of the definitive feasibility study for the Kola Project, the company intends [to] further assess the strategic options to unlock the value of the Dougou deposits," Sampson said.
Shares in Kore Potash were up 4.3% at 4.9p.