Kore Potash has completed an Optimised Definitive Feasibility Study for its Kola Potash Project, outlining a $2.07 billion capital cost and a 23-year mine life. The company also secured $10.1 million in funding and holds $10.2 million in cash as it prepares for construction.
- Optimised DFS completed for Kola Project with $2.07 billion capital cost
- 23-year life of mine with 2.2 million tonnes annual potash production
- Signed fixed-price EPC contract with PowerChina
- Raised approximately US$10.1 million in recent fundraise
- Strong government support from Republic of Congo maintained
Optimised Feasibility Study Sets Stage for Kola
Kore Potash has taken a significant step forward in advancing its flagship Kola Potash Project in the Republic of Congo by completing an Optimised Definitive Feasibility Study (DFS). This updated study incorporates the recently signed Engineering, Procurement and Construction (EPC) contract with PowerChina International Group Limited, providing a comprehensive and current blueprint for the project’s development.
The Optimised DFS outlines a capital expenditure of US$2.07 billion on a fixed-price basis, reflecting a robust financial commitment to the project’s construction and owner’s costs. With construction anticipated to commence in January 2026 and a build period of 43 months, Kore Potash is positioning itself to deliver a substantial new source of potash to the global agricultural market.
Production and Financial Outlook
The study projects a 23-year life of mine, producing an average of 2.2 million tonnes per annum of Muriate of Potash (MoP), totaling 50 million tonnes over the mine’s lifespan. Notably, the mine plan utilises all Proved and Probable Ore Reserves and only a small portion (6%) of Inferred Mineral Resources, suggesting potential for future mine life extension through further exploration.
Financially, Kore Potash anticipates an average annual EBITDA of approximately US$733 million, with a strong margin of 74%. The project’s net present value (NPV) at a 10% discount rate stands at US$1.7 billion post-tax, and an internal rate of return (IRR) of 18% on an ungeared post-tax basis, underscoring the economic viability of the development.
Strategic Partnerships and Government Relations
The EPC contract with PowerChina, signed in November 2024, marks a critical milestone, bringing a reputable global construction partner on board. PowerChina’s parent company, SEPCO Electric Power Construction Corporation, has already commenced work, reinforcing the project’s momentum.
Government relations remain a cornerstone of Kore Potash’s strategy. The Republic of Congo’s State Minister of Mines and Geology has consistently reaffirmed support for the project, validating mining titles and agreements despite previous delays. This ongoing engagement is vital for navigating regulatory and operational challenges in the region.
Funding and Financial Position
On the corporate front, Kore Potash successfully raised approximately US$10.1 million during the quarter through a share placement, with an additional US$0.5 million conditionally raised pending shareholder approval. The company ended the quarter with a healthy cash balance of US$10.2 million, providing a solid financial runway as it advances towards construction.
Exploration expenditure was modest at US$685,000, focused primarily on the Kola study, with minimal spend on the Dougou Extension project. The company remains focused on securing full financing for Kola and evaluating strategic options for Dougou Extension, signalling a disciplined approach to capital allocation.
Outlook and Next Steps
While no mining production or construction activities occurred during the quarter, the completion of the Optimised DFS and the EPC contract signing lay a strong foundation for the next phase. Kore Potash’s ability to execute on financing and maintain government support will be critical as it transitions from planning to operational development.
Bottom Line?
Kore Potash’s Optimised DFS and funding progress set the stage for a pivotal year ahead as the Kola Project moves closer to construction.
Questions in the middle?
- How will Kore Potash secure the remaining financing needed for full project development?
- What are the prospects and timelines for extending the mine life beyond 23 years through resource upgrades?
- How might geopolitical or regulatory changes in the Republic of Congo impact project execution?