Kore Potash sets DRC project cost at $2B amid funding doubts

Kore Potash (LON: KP2) announced on Thursday that the cost of developing its Kola potash project in the Republic of Congo is estimated at $2 billion, according to an optimized definitive feasibility study.The estimate includes the fixed-price engineering, procurement, and construction contract with PowerChina International Group Limited.Kore expects construction at Kola to begin on January 1, 2026 and take around three and a half years. The project is designed to produce 2.2 million tonnes of potash annually over a 23-year period. The company sees potential to extend the mine’s life by upgrading inferred mineral resources through further exploration.Estimated annual earnings before interest, taxes, depreciation, and amortization (EBITDA) from the project are forecast at around $733 million.“Kola is of global significance, as the security of the world’s food supply remains vulnerable to disruptions in fertilizer production,” said CEO Andre Baya.Kore estimates more than half a billion tonnes of sylvinite in the measured and indicated categories, with an average grade of 35% potassium chloride (KCl) — comparable to the highest-grade operating potash mines worldwide.Congo offers US, Europe minerals in exchange for peaceThe company warned there is no guarantee it will secure the necessary funding when required. Kore noted that any financing it does obtain could be highly dilutive or have adverse effects on shareholders.Baya noted that recent geopolitical events have underscored the risks associated with potash supply, given that production is concentrated among a handful of companies and countries.The company did not comment on the impact of the ongoing conflict in the DRC. In recent weeks, the Rwanda-backed M23 rebel group has captured two major cities in the country’s east, securing its strongest position since resuming its insurgency in late 2021.The fighting has killed thousands and displaced many more, according to the United Nations. In response, President Félix Tshisekedi has reportedly offered the United States access to the DRC’s vast critical minerals in a bid to gain Washington’s support in expelling M23 and Rwanda from the region.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com