KORE Potash has received the go-ahead from the Republic of Congo (RoC) to proceed with a definitive feasibility study (DFS) for its Dougou Extension (DX) project.
The London- and Johannesburg-listed firm said in an announcement today it had received authorisation from the government’s Ministry of Tourism and Environment for the proposed environmental plan ahead of a drilling programme.
“We have seen improvements in the DX project as each phase of work has progressed, and we are excited to be moving forward with the DFS,” said Brad Sampson, CEO of Kore.
The DX project is scoped for production of 400,000 tons a year of muriate of potash. It would require 21 months of construction at a pre-production capital cost of $286m.
This was in terms of a pre-feasibility study which has planned for an 18-year life of mine for DX during which time EBITDA of $118m would be generated.
The drilling programme is designed to improve confidence in the mineral resources and ore reserves of the DX deposit, the company said today.
The company had initially scoped out Kola, a tier-1 project that is part of the Sinotoukola Potash Project (of which DX is also a part). Developing Kola, however, comes with a hefty pre-production cost of $2.1bn.
Increasingly, the specialised resources sector has been turning its attention to the prospects offered by mineral fertiliser production.
In January, Anglo American bought Sirius Minerals for £405m for its Woodside polyhalite project, another source of fertiliser aimed at the food security market.