Potash development company Kore Potash’s local subsidiary company has received a letter dated October 12 from the Minister of Mines of Congo-Brazzaville, expressing his discontent with aspects of the administration of the company’s subsidiary companies in the country and the apparent lack of progress that Kore Potash and the Summit Consortium are making towards financing of the Kola project.

Kore has a 97%-ownership of the Kola and Dougou (DX) potash projects in the Sintoukola Basin.

The letter was received following the arrest and subsequent release without charge of two senior employees of the company by the local police. Neither the employees nor the company have been informed of the reason for the arrests, Kore says.

The letter generally reserves the government’s right to take measures in accordance with its existing agreements and the Mining Code of the Congo, failing a response from the company within 30 days.

Kore says it most recently updated the Minister on October 10 on the positive progress being made in the development of Kola and receipt of the engineering, procurement and construction (EPC) proposal for the construction of Kola. 

It says the company continues to work through the process for financing Kola as agreed with the Minister on April 6, 2021, and detailed in the memorandum of understanding with the Summit Consortium signed in the Minister’s office in Brazzaville.

Kore says that, while the impact of Covid-19 controls in China caused a delay in the timing of the finalisation of the EPC proposal, the Summit Consortium continues to work through the agreed process steps towards presenting the company with the financing proposal for the full construction cost of Kola.

Kore advises that it is continuing to progress the development of the Kola and DX projects towards production, believes that it is in compliance with its obligations to the government under the Mining Code and Mining Convention and will continue to keep the Minister briefed on the company’s plans and progress.

The company intends to formally respond to the Minister’s letter within the 30-day period afforded by the Minister.