Australia Kore Potash completes Kola project EPC contract

HOUSTON (ICIS)–Australian Kore Potash announced it has finalised the agreement on the engineering, procurement and construction (EPC) contract for the Kola project with PowerChina International Group Limited (PowerChina) on 28 October.

Kore Potash and PowerChina are now working towards convening a date which is currently set for 19 November for the signing ceremony with the Minister of Mines and other officials in the Republic of Congo-Brazzaville.

In an update on financing, the company said it continues to work with the Summit Consortium to provide for the construction cost and is intended to be based on royalty and debt finance.

Kore Potash added that the financing parties have confirmed their ongoing strong interest and has advised that the term sheet will be provided within three months of the execution of the EPC contract.

The company does plan to conduct a small capital fund raise in November to finance working capital.

Kola is expected to be designed with the capability to produce 2.2 million tonnes/year of granular muriate of potash (MOP) over an initial 31-year life.