The Kanga potash project, in Congo-Brazzaville, has been touted as a “market disruptive potash opportunity” by private equity investment group African Mineral Exploration and Development (Amed) Fund director Luke Knight.

Speaking during a Junior Indaba session that showcased junior mining companies, projects and investment opportunities, on June 2, he noted that the project was 68.57%-owned by Amed Fund, 28.88% by Barbados-based private equity investment company Sarmin and 7.55% by LSE-listed investment company Baker Steel Resource Fund.

In terms of being disruptive, Knight said the project offers “exceptional” geological characteristics, with ultra-thick carnallitic seams in excess of 210 m of mineable thickness.

Because the project is based near the Atlantic Ocean, 32 km from Pointe Noire, it also has logistical advantages in being able to load ore on ships through a jetty the company plans to build, as well as being more efficiently able to service the key Brazilian market and developing African offtakers.

In terms of power for the mine and plant, Knight said readily available and competitively priced natural gas would ensure a low cost of power.

The intention is to undertake the project in a modular fashion, which enables low capital expenditure (capex) intensity of $457-million and low operating capex entry of $66/t.

Initial plant capacity will be 600 000 t/y, scalable to 2.4-million tonnes a year.

He added that the project would also have “highly compelling economics” with the 600 000 t/y module reflecting a net present value of $604-million.

Further adding to its disruptive advantages, is the projects “market leading” sustaining capex, said Knight.

The project is expected to produce earnings before interest, taxes, depreciation and amortisation of $125-million a year, have a 20-year cavern life and a 30-year life-of-mine.

PROGRESS TO DATE

Since 2016, the Kanga project has secured an exploration permit, with initial field work completed, exploration programmes defined and initial exploration well locations sighted.

In 2017, the project saw three wells being drilled, with solution mining parameters being confirmed on core samples, as well as the development of an exploration programme that highlighted “excellent” correlation between wells for all 11 mineable carnallite seams.

In 2018, a prefeasibility study (PFS) was conducted as a Class 3 estimate to National Instrument 43-101 standards for an initial 600 000 t/y module.

This PFS used a modular approach, assessing the economic viability of 400 000 t/y, 800 000 t/y and 2.4-million-tonne-a-year production scenarios.

In 2020, the project progressed, with a definitive feasibility study having been completed for a 600 000 t/y module.