After years of sluggish progress — which prompted veiled threats from the Republic of the Congo’s government at one point — Kore Potash is finally moving into the execution phase of its long-awaited Kola project.
Located in the Central African country’s mineral-rich Sintoukola Basin, the large-scale potash mine is now set to begin construction in January 2026, with first production aimed for 2029, targeting key agricultural markets in Brazil and Africa.
The most critical development has been the signing of a final engineering, procurement and construction (EPC) contract with PowerChina International Group in November 2024.
PowerChina is a major global infrastructure contractor with extensive experience in large-scale energy and mining projects. As one of China’s largest state-owned enterprises, its involvement provides both credibility and muscle to the execution of the Kola project.
The EPC is a fixed-price contract valued at $1.929bn. For Kore Potash, the fixed-price nature of the contract is particularly important. It caps the construction cost, shielding the company and its shareholders from inflationary overruns and the typical cost creep that haunts major infrastructure projects. Built into the agreement are further protections and incentives — penalties for delayed completion, and bonuses for early delivery.
Of the total contract value, about $708.9m is earmarked specifically for transportation infrastructure and utility pipelines, designed to make Kola an almost entirely self-contained operation. This is critical in a region where reliance on state infrastructure can introduce risk.
Under Kore’s design, ore will be extracted from a conventional mechanised underground potash mine with shallow shaft access and carried to the processing plant by a 25.5km overland conveyor. Once processed, the finished muriate of potash (MOP) product will be moved 8.5km to a dedicated marine export facility. From there, the product is transferred from on-site storage onto barges at a specialised loading jetty before being transhipped onto ocean-going vessels for global export.
Kore Potash believes that Kola’s integrated infrastructure, high level of self-reliance, and exceptionally shallow, high-grade deposit — among the shallowest globally — combined with its proximity to major markets, will make it one of the lowest-cost potash producers in the world.
Further strengthening Kore’s hand, PowerChina has submitted a separate proposal to act as operator of the entire Kola project. The group brings significant experience in managing complex industrial operations including mining, processing plants and port facilities. If accepted, this proposal could streamline operations and lower overall operating costs by leveraging PowerChina’s existing expertise and resources.
Shortly after the EPC agreement was finalised, Kore Potash conducted an updated definitive feasibility study (DFS) for Kola. The updated DFS reaffirmed the project's robust fundamentals: a projected 23-year mine life — potentially extendable — delivering 2.2Mt of MOP annually.
Most notably, it estimated a net present value (NPV) of R32bn, based on an average potash price of $449 per ton over the 23-year period. This figure stands in stark contrast to Kore Potash’s current market cap of just R2.2bn, underscoring the potential value gap.
Of course, forecasts are just that — projections subject to real-world fluctuations. The $449 per ton potash price used in Kore Potash’s valuation comes from independent market research firm Argus Media. That compares to a current spot price of about $336 per ton and an estimated NPV breakeven of roughly $270. Still, the forecast holds up under scrutiny, especially given the expected compound annual growth rate in global potash demand of 4.5%-5.4% for the foreseeable future.
Potash, a key source of potassium and one of three essential plant nutrients along with nitrogen and phosphorus, is primarily used as fertiliser to enhance plant growth and improve crop yields.
The final piece of the puzzle is project financing that covers all construction and infrastructure costs
The final piece of the puzzle is project financing that covers all construction and infrastructure costs. Kore Potash has long indicated that the financing would likely be structured through a mix of royalty agreements and debt to minimise dilution for shareholders.
The key player here is the Summit Consortium — a group of investors that includes OWI Global, an Abu Dhabi-based investment group; Sepco, an international engineering and construction group and subsidiary of PowerChina; and China ENFI Engineering Corp, an engineering group with specific mining, processing and potash experience subcontracted by Sepco.
The consortium has been working with Kore Potash to deliver a binding financing proposal, which is expected to be received before the end of April. Once delivered, the company will evaluate the terms and decide whether to proceed. The company expects any financing provided by the Summit Consortium to be subject to the consortium being granted full security over the Kola Project. Small capital raises to fund working capital will be required until project financing is in place, which could be slightly dilutive.
With an EPC contract locked in, an operator proposal on the table and DFS results that highlight a massive value gap, Kore Potash is entering a make-or-break phase.
For years, the project has existed more as a PowerPoint presentation than a mine. But now, bar an unexpected hiccup in the financing proposal, one of the world’s most compelling potash stories finally looks ready for lift-off.
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