Kola gets $2.1bn price tag
PERTH (miningweekly.com) – The Kola potash project, in the Republic of the Congo (also known as Congo-Brazzaville), is expected to cost $2.1-billion to develop, triple-listed Kore Potash said on Tuesday.
The ASX-, JSE- and Aim-listed company revealed that Kola would have a nameplate capacity of 2.2-million tonnes a year of muriate of potash (MoP), over a 33-year mine life, delivering average annual earnings before interest, taxes, depreciation and amortisation of about $585-million and average yearly free cash flow of some $500-million.
A definitive feasibility study (DFS) into the project estimated a post-tax net present value of $1.45-billion and an ungeared internal rate of return of 17%.
Mine gate operating costs are expected to average $61.71/t, putting the project in the lowest cost quartile globally, while average costs of MoP delivered to Brazil would be around $102.47/t.
“Kore’s review of the DFS confirms the high quality of this potash asset and its importance globally. Kola is designed to deliver potash to markets in Latin America and Africa at a significantly lower cost than other potash producers over a long timeframe,” said Kore CEO Brad Sampson.
“It stands out globally as a project that needs to be brought into operation to meet the growing global demand for MoP. In the near future, we expect to amend the environmental and social impact assessment to be approved as the last step to full permitting of the project.”
The review of the DFS has also identified opportunities to improve and optimise the project, including opportunities to reduce the technical capital costs as well as potential to improve recovery rates, reduce the construction schedule by some six months, and extend the life or scale of the project by incorporating the Sylvinite mineral resource at the nearby Dougou extension deposit.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
