Kore delays term sheet for potash project to mid-April

KORE Potash said it hoped to have a term sheet that will help finance its $2bn Kola project in the Republic of Congo by mid-April following delays.The previous end-March deadline for the financing package was not met owing to Ramadan season and Eid celebrations, the UK-listed firm said on Tuesday.Summit Consortium consisting of China’s SEPCO, the Oman Investment Authority and SQM, a Chilean chemicals firm, is behind Kola.“While having made very good progress, the consortium was unable to finalise the term sheet by the end of March as targeted,” said Kore Potash CEO Andre Baya. “The consortium has advised Kore that they need more time to complete their internal process which has been impacted by the Ramadan season and Eid celebrations.”“The Summit Consortium is now expected to deliver the term sheet before the end of this month and hopefully by mid April 2025,” he said.The company also said that its chairperson David Hathorn would participate in the company’s recent $10.6m bookbuild programme, buying £500,000 worth of shares. Funds from the shares issued would be used primarily to pay for early works.Kola has been designed to produce 2.2 million tons a year of muriate of potash. This is in terms of an optimised definitive feasibility study. Construction of the project is scheduled for 2026 and first production anticipated about about three-and-a-half years later.In November, PowerChina International Group, parent company of SEPCO, signed a $1.93bn EPC contract agreement in RoC’s Brazzaville. The contract is fixed priced, meaning the risk of project overruns was “minimised”, said Kore at the time.Of the $1.93bn contract, roughly $708.9m is for transportation and utilith pipelines which Kore said would make it self-reliant unlike other potash projects. It will supply muriate of potash to Brazil and other emerging African nations.Potash is used to improve crop yields. New mineral fertiliser projects are under currently under development by BHP and Anglo American. The potash market is projected to grow at a compound annual growth rate of 4.5% for the foreseeable future.The post Kore delays term sheet for potash project to mid-April appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com