Major potash deposits in Republic of Congo
Kola sylvanite deposit contains 508mln tonnes of ore
Dougou contains 1.1bn tonnes
What the company does
Kore Potash PLC (LON:KP2) is focussed on the development of potash assets in the Republic of Congo. The company started exploration work back in 2010, in the days when it was known as Elemental Minerals, and has since progressed its assets steadily towards the point where major economic studies are now underway to assess viability.
Potash is used extensively around the world as a fertilizer.
What the company owns
Kore owns 97% of a company called Sintoukoula Potash SA. This vehicle in turn, owns 100% of Kore’s two major projects.
The lead project is the Kola sylvanite deposit, which contains 508mln tonnes of ore grading 35.4% potassium chloride (KCl). Within that is 152mln tonnes of proved and probable ore grading 32.5%.
Coming along behind is the larger Dougou carnallitite project, which contains 1.1bn tonnes of ore grading 20.6% KCl.
There is also further upside on offer from the Dougou Extension sylvanite project, which contains 232mln tonnes grading 38.1% KCl.
In January 2019, Kore completed its review of the definitive feasibility for Kola which was completed by a French consortium. This consortium now plans to deliver a proposal for an engineering, procurement and construction contract for Kola by the end of the first quarter of 2019.
Further optimisation of the Kola feasibility study is also taking place, and discussions with regard to financing construction are continuing.
Chief executive Brad Sampson pleased with progress
“Kore’s review of the DFS confirms the high quality of this potash asset and its importance globally,” said Sampson.
“Kola is designed to deliver potash to markets in Latin America and Africa at a significantly lower cost than other potash producers over a long timeframe. It stands out globally as a project that needs to be brought into operation to meet the growing global demand for MoP [muriate of potash]. In the near future, we expect the amended ESIA to be approved as the last step to full permitting of the project. We look forward to receiving an EPC proposal from the French consortium this quarter which will allow Kore to provide further detail to shareholders on the company’s plans for Kola.”