Name of the Project
Kola potash project.

Location
The Kola project is located in the Kouilou province of Congo-Brazzaville.

Project Owner/s
Kore Potash.

Project Description
The Kola project is one of the shallowest muriate of potash (MoP) deposits globally and one of the highest-grade undeveloped potash deposits globally.

The Kola definitive feasibility study (DFS) proposes mining of the Kola sylvinite, and the production of about 2.2-million tons a year of MoP over a 33-year mine life and its export.

The Kola orebody is planned to be mined using conventional underground mechanised methods, extracting the ore within ‘panels’ using continuous miner (CM) machines of the drum-cutting type. The mine design adopts a relatively typical layout including panels, comprising rooms and pillars.

Mine access will be provided by two vertical shafts, each 7 m in diameter. The shafts will be sunk in the centre of the orebody. To provide access underground, the intake shaft will be equipped with a hoist and cage system for transportation of persons and material. The exhaust shaft will be equipped with a pocket lift conveyor system to continuously convey the mined-out ore to the surface. Both shafts are about 270 m deep.

Mining equipment selected for the Kola project mine includes a fleet of six electrically powered CMs. Ore haulage from the CMs to the feeder breaker apron feeder will be done using electrically powered shuttle cars, with a rated payload of 30 t and a 250 m power supply cable.

Underground conveyor belts will be used for ore transportation in all the areas of the mine. The belt conveyors are distributed in the main and submain haulages and ultimately in the working panels near the CM working face. The ore will be placed on the belts from feeder breakers that are fed by the shuttle cars. Belt conveyors will carry the ore loaded by the feeder breakers to the ore bins. The ore is then conveyed from the ore bins to the pocket lift system located in the exhaust shaft.

Ore from underground will be transported to the process plant by a 35-km-long overland conveyor.

A conventional potash flotation plant has been designed for the project. The design strategy adopted delivers a process plant designed to produce 2.2-million tonnes a year of MoP at a potassium chloride grade of 95% and that will accommodate the variety of run-of-mine feedstock characteristics expected to be encountered during the life of the project.

The economic model is based on a 23-year mine life, based on ore reserves of 152.4-million tons and 9.7-million tons of inferred mineral resources, and an additional ten years (for a 33-year mine life) when the exploitation of a portion (70-million tonnes) of the inferred mineral resources is included.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax real net present value, at a 10% discount rate, of $1.45-million and a real ungeared internal rate of return of 17%, with a 4.3-year payback from first production.

Capital Expenditure
Preproduction capital is estimated at $2.1-billion on an engineering, procurement and construction management basis.

Planned Start/End Date
The project has a 46-month construction period, with a start date to be determined following advancement of construction contract negotiations and project financing.

Latest Developments
Kore Potash has received a new proposal from a French consortium of engineering companies that has identified opportunities to potentially reduce the capital cost of the Kola potash project by $415-million.

The company expects to continue discussions with the consortium to fully understand its proposal for capital savings, further explore additional options to reduce the capital cost and shorten the construction schedule for Kola ahead of starting the financing phase.

In addition to the ongoing discussions with the consortium, seven international engineering and construction groups have accepted invitations to provide comparative pricing against the Kola bill of quantities.

The company expects to receive this new pricing information during the fourth quarter and to incorporate this information into the Kola optimisation programme.

Key Contracts and Suppliers
Technip France, Vinci Construction Grands Projets, Egis International and Louis Dreyfus Armateurs (DFS); Met-Chem DRA Global and AMC Consulting (specialist subconsulting); Met-Chem DRA Global (mineral resource estimate); SRK Consulting (environmental- and social-impact assessment); and Jukes Todd, Hatch and Wood (reviews of the final draft DFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Kore Potash, tel +27 11 460 9140.
Tavistock on behalf of Kore Potash, tel +44 207 920 3150 or email kore@tavistock.co.uk.