Dual-listed Kore Potash has started a detailed review of the optimisation study on the Kola project, in Congo-Brazzaville, which was undertaken by an engineering partner of the Summit Consortium, with which Kore has a memorandum of understanding in place.
The consortium aims to submit an engineering, procurement and construction (EPC) contract proposal for the construction of the project, based on the outcomes of the optimisation study, within the next two months.
Following Kore’s receipt of the EPC proposal and agreement on its terms, the consortium intends to provide a financial proposal for the construction of the project.
Preproduction capital is estimated at $2.1-billion and the project has a 46-month construction period. It is expected to produce about 2.2-million tons a year of muriate of potash, over a 33-year mine life.
“The dramatic increase in the potash price amid global events impacting food security and continuity of supply of fertiliser, reinforces the need for the development of new, low-cost potash production, located close to customers,” comments Kore CEO Brad Sampson.