Name and Location
Mengo potash project, Republic of Congo.

Client
MagIndustries.

Project Description
The Mengo project is a 1.2-million-tonne-a-year greenfield potash project under construction in the Republic of Congo.  The facility is expected to be one of the world’s lowest-cost producers, owing to its highly efficient solution mining technologies, access to natural gas and its proximity to planned new port facilities and its principal markets.

Value
Initial capital expenditure (capex) is estimated at $1.27-billion. Estimated capex includes costs for the solution mining brine field and the evaporation and crystallisation plant. It further includes related utilities and infrastructure, gas and water supply, product transportation to the port site, drying and compaction, product storage and a shiploading facility on a dedicated jetty.

Duration
The completion and handover of the project is scheduled for March 31, 2016, subject to the conclusion of a project finance package.

Latest Development
In November 2013, MagIndustries reported progress on its application to the China Development Bank, which has resulted in a letter of commitment from the bank, related to a major component of project funding.

Meanwhile, MagIndustries has reported that all temporary construction facilities and living facilities have been established; a detailed geological survey has been completed; 70% to 80% of pile foundation work has been completed; reinforced concrete foundation construction has been fully launched and is in progress; the assembly of plant/building structure steel has started; tenders have been issued for brine extraction and well development, as well as for the construction of the permanent living and working base; pipe installation has started; and jetty engineering, design and construction preparation have received intensive effort.

In terms of key project modules, the foundation concrete work in the processing plant area has been completed, the pouring of concrete foundations for the thermal power plant have been completed for the chimney, flues, boiler room and turbine room and associated equipment. Foundation pilings are also in place for the cafeteria, administrative  building and residences. In the compaction plant, the levelling of the construction site has been completed, the foundation piling of built temporary construction facilities are nearing completion and have delivered earth fill for road construction.

Key Contracts and Suppliers
CHCS (supervisor of engineering work) and ECEC (framework agreement).

On Budget and on Time?
Not stated.

Contact Details for Project Information
MagIndustries director: investor relations and corporate development Rich Morrow, tel +1 416 368 7911 or email rmorrow@magindustries.com.
ECEC industrial business division, tel +86 551 362 1716 or fax +86 551 364 1192.