Kore signs heads of agreement for construction of Kola
Kore Potash, the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo (“RoC”), has announced that it signed a Heads of Agreement for the construction of the Kola Potash Project (“Kola”).
Brad Sampson, Chief Executive Officer of Kore Potash, commented: “The Heads of Agreement with SEPCO reconfirms their commitment to advance from the completed Kola optimisation phase, to construction contract formation and then into construction of Kola. We look forward now to receiving the EPC contract proposal.”
Heads of Agreement
Kore Potash signed a in the presence of the Minister of State and Minister of Mining, Industry and Geology of Congo, Mr Pierre Oba. Following the signing of the HoA, the Minister of State commented that, the Kola project is of vital international interest and congratulated Kore Potash on the successful outcome of negotiations with SEPCO.
The Heads of Agreement for the construction of Kola confirms the timeline for SEPCO to complete their discussions with Kore ahead of presenting the Company an EPC construction contract proposal for Kola. It also provides additional clarity on matters that SEPCO are required to finalise in advance of presenting Kore with the construction contract proposal.
The HoA provides for:
- Kola to be designed and constructed as a conventional underground potash mine and processing plant producing up to 2.2 million tonnes per annum of granular MoP over an initial 31 year life.
- The granular MoP produced by Kola will be at a minimum quality of 95.3 % KCl in line with international standards.
- The capital cost to construct Kola will be US$1.83 billion as detailed in the announcement “Kola Optimisation Study” on 27 June 2022 and the construction period will be 40 months.
