Kore Potash's groundbreaking EPC contract

Kore Potash (ASX:KP2) has cemented a significant step forward by finalizing an Engineering, Procurement, and Construction (EPC) contract with PowerChina International Group Limited. This contract, valued at US$1.929 billion, is aimed at advancing the Kola Potash Project in the Republic of Congo. The project is designed to mitigate cost overruns and enhance infrastructure self-reliance.

Kore Potash's strategic vision and project outlook

Kore Potash has signed a US$1.929 billion EPC contract with PowerChina to advance the Kola Potash Project in the Republic of Congo, aiming for completion in 43 months. The project aims to produce 2.2 million tonnes of Muriate of Potash annually over 33 years. By focusing on infrastructure self-reliance and a fixed-price model, Kore Potash seeks to reduce financial uncertainties and position itself as a low-cost producer in the global market. The company is awaiting a financing proposal from the Summit Consortium and plans to begin construction in late 2025, with first production anticipated in early 2029.

Insights from the Kore Potash team

The fixed-price contract with PowerChina allows us to proceed with confidence in developing the Kola Potash Project. Our aim is to become one of the lowest-cost producers in the global agricultural potash market, with a particular focus on servicing the Brazilian and African markets.