Australia Kore Potash receives optimisation study for Kola project

HOUSTON (ICIS)–Australian producer Kore Potash announced it has received the Kola potash project optimisation study and has now commenced its detailed review which is expected to take several weeks to complete.

The study was undertaken by the engineering partner of the Summit Consortium (Consortium) and SEPCO Electric Power Construction Corporation (SEPCO) and the key goals were to achieve reductions in the capital cost and shortening the construction schedule.

Kore said delivery of the study completes work on the optimisation phase of the project located in Republic of Congo-Brazzaville and their focus will now shift towards securing an engineering, procurement and construction (EPC) contract proposal.

It is anticipated that the Consortium will submit an EPC proposal within the next two months as it has advised Kore that it is pleased with the outcome of the study.

Kore is also expecting it will receive the financing proposal for the construction of Kola following agreement on EPC terms but said it does not anticipate the study review will negatively impact the timing of the proposals.

The producer said it is aware that over the last year prices have risen dramatically in all markets which has reinforcing the need to develop new low-cost potash projects such as Kola.

At the same time, Kore said the company is conscious of the current volatile global context and inflationary pressures on input costs, so it is working to expedite completion of both the EPC and financing proposals as quickly as possible.

“Receipt of the Kola optimisation study represents another key milestone towards the financing process for Kola. We enthusiastically await the EPC proposal and are excited to be closer to receiving the financing proposal from the Consortium, at a time when the world has become acutely aware of the need to develop new and high-quality long-life potash deposits like Kola that are located close to key global potash customers,” said Brad Sampson, Kore Potash CEO.