Kore warns of potential delays in approving engineering contract for $1.83bn Kola potash


KORE Potash warned of possible delays in the approval of a financing package for the proposed $1.83bn Kola project in the Republic of Congo (RoC).

The Johannesburg- and London-listed firm said in an announcement today that certain aspects of an engineering and procurement proposal delivered by China’s SEPCO – a member of the project’s financing consortium – required further board discussion. This would in turn require approvals from SEPCO’s board.

Certain delays had already been sustained in the project’s approval owing to disruptions caused by Covid-19 lockdowns in China, the company said.

“The consortium has communicated that it remains committed to the financing of Kola and are currently awaiting Kore and SEPCO finalising the EPC contract terms prior to presenting its royalty and debt financing proposal for the full construction cost of Kola,” said Kore.

The consortium consists of the Oman Investment Authority and SQM, a Chilean chemicals company as well as SEPCO.

SP Angel, the UK stockbroker said earlier this year that Kola was “one of the major catalysts” in unlocking value from Kore. “The project offers potentially one of the most competitive potash supply sources for end markets in Brazil,” it said.

Kore will produce a form of potash, a fertiliser, called ‘muriate of potash’ which is considered a crucial element in improving crop yields globally. Food security has received fresh attention following the invasion of Ukraine as aggressor Russia, and its ally Belarus, account for 40% of world potash stocks.