Kore Potash's flagship Kola project is anticipated to be one of the lowest MoP producers globally, once operational in 2022. The operating cost of approximately US$100/t cfr granular is supported by fundamental geological and geographical factors.
Kola's high grade ore and low insoluble content ensure that the processing costs remain low, while the shallow depth (250m) reduced the mining costs over deeper and more complicated ore bodies in Canada and Russia.
The ROC has comparatively low gas, electricity, water and labour costs, all of which further contribute to the opex advantages. Kola is located approximately 35km from the coast and a project-owned export facility and conveyor belt will ensure minimal transport costs compared to other producers.
The project pipeline in the Sintoukola Basin ensures that significant future upside remains. The Dougou and Dougou Extension discoveries can support an estimated 5Mtpa MoP production in the long term, with further exploration upside remaining in the area. In order to support these potential expansions, Kore Potash has finalised a basin wide Masterplan, which aims to incorporate future infrastructure synergies associated with utilities supply, accommodation and export facilities into the planned Kola design.
The Congolese government is very supportive of Sintoukola Potash and has shown this support by approving numerous permits required for the project development. These include the Kola mining license, the Kola ESIA approved and the Kola land acquisition process.
Further permits that have been submitted are currently expected to be approved by Q1 2017 are the Dougou mining licence, the Dougou ESIA and the Mining Convention,which sets out the fiscal framework for all Kola and Dougou developments.
For a strategically important commodity such as potash, independence of supply is often as important as reliable supply. Importantly, the RoC provides a geographically and politically independent source of potash, outside the key global producing regions of North America and the Former Soviet Union.
The project benefits from a superior location, both in country and globally. Being only 36km’s form the coast and 90km from Pointe Noire allows for a project setting that simplifies both construction and operation. Run of mine will be transported via an overland conveyor to the process facility at the coast, from where the MoP will be exported via a dedicated jetty and transhipment facility.
The project takes benefit of the available infrastructure including access to low cost gas supply from the offshore oil industry as well as low cost power supplied by the gas-powered power plant in Pointe Noire.
The Republic of Congo is better located than any current producer to supply the large and growing market of Brazil as well as service the future potential of Africa.
The Kola project is underpinned by a high grade sylvinite resource 33% KCl with very low insoluble content (0.15%) which allows for a simplified flowsheet that supports expections recovery, all contributing to expected low operating costs.
The seams are at a depth of between 200m and 300m deep, which is very shallow compared to most potash mines that are deeper than 1000m. This will contribute to lower capital and operating cost.
An experienced board and management team that is focused on delivering the best value is supported by high quality investors that bring both operational skills and global marketing expertise. The owner’s team will direct a truly world class Engineering and Construction Consortium who has a wealth of ongoing, in-country experience to design and deliver this project.