https://www.engineeringnews.co.za
Construction|Design|Energy|Engineering|Financial|Infrastructure|Mineral Processing|Mining|Power|PROJECT|Projects|SECURITY|Service|Storage|Systems|Underground|Infrastructure|Operations
Construction|Design|Energy|Engineering|Financial|Infrastructure|Mineral Processing|Mining|Power|PROJECT|Projects|SECURITY|Service|Storage|Systems|Underground|Infrastructure|Operations
construction|design|energy|engineering|financial|infrastructure|mineral-processing|mining|power|project|projects|security|service|storage|systems|underground|infrastructure|operations

Kore Potash, Sepco gearing up for crucial developments at Kola project

12th October 2023

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

In anticipation of significant milestones, Aim- and ASX-listed potash developer Kore Potash and Shanghai Electric Power Company (Sepco) are gearing up for crucial developments at the Kola project, in Congo-Brazzaville.

Sepco is aiming to complete all engineering design tasks at Kola by December.

Following this, in January 2024, an engineering, procurement and construction (EPC) contract offer will be extended to Kore, marking a pivotal moment in the project timeline.

This progress follows a comprehensive agreement initiated on August 8 between Kore and Sepco. Under the terms of this agreement, Sepco, supported by its parent company PowerChina, embarked on essential additional engineering design works for the Kola project.

These efforts encompass various critical areas, such as the underground mine, mineral processing jetty, transshipment operations, energy transportation and storage, as well as conveyor systems and materials handling.

PowerChina committed to cover costs exceeding $10-million, capping Kore's contribution at $5-million. An initial payment of $1-million, made in August, kickstarted the project's financial aspects.

Subsequent payments, contingent on Kore's fundraising efforts and Sepco's delivery of the EPC contract, are planned between October 25 this year and 12 months from the contract signing date.

Sepco's engagement has been comprehensive, with personnel having been stationed in Congo-Brazzaville for six months, fostering partnerships and conducting vital site visits at Kola.

Moreover, Kore says, a dedicated team is mobilised, focusing on gathering essential data regarding service corridors, conveyor routes and geomechanical specifics related to the processing plant and infrastructure areas.

These endeavours align with Sepco's commitment to presenting an EPC contract to Kore in January.

Notably, the ongoing works include elements that could potentially streamline construction timelines, underscoring PowerChina and Sepco's strategic approach to the project's success.

Kore is also actively collaborating with the Summit Consortium to secure financing for the complete construction expenses of the Kola project, which is intended to rely on a combination of royalties and debt finance.

The consortium expressed satisfaction with the outcomes of the study, aligning with their requirements and bolstering the ongoing financing discussions, the developer notes in an October 12 update to shareholders.

The parties involved in the consortium have reiterated their strong interest in funding Kola and are “eagerly anticipating the finalisation of the EPC contract terms”.

The detailed financing proposal covering the entire construction cost of Kola will be presented to Kore within six weeks of finalising the EPC terms.

In terms of relations with the Congo-Brazzaville government, the Minister of Mines has conveyed support for Kore’s Kola and Dougou projects through a formal letter.

While acknowledging some unmet development objectives outlined in the Mining Convention, the Minister assured unwavering moral and security support to overcome remaining challenges in financing Kola, Kore points out.

Kore says the Minister had reaffirmed the validity of the company's mining tenement titles and the operating agreement, emphasising the government's confidence in Kore.

Kore confirms that it remains focused on completing the financing of the Kola project and that it will “continue exploring what strategic options are available for the Dougou extension potash project”.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 
Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer
Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.076 0.129s - 162pq - 2rq
Subscribe Now