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Kore Potash's new chief takes hard look at costs of Kola

Published: 09:29 31 Jul 2018 BST

fertiliser
The company should receive the DFS next month to review

Kore Potash Ltd (LON:KP2) has appointed a third party to refine the definitive feasibility study (DFS) for its Kola potash project in the Republic of Congo.

Delivery of the DFS for the company to review is scheduled for next month, but Kore has already commissioned an independent assessment of some aspects of the Engineering, Procurement and Construction (EPC) pricing.

READ: Kore Potash sees currency gains offset listing fees in 2017 results

A consortium of French engineering companies - Technip, Vinci, Egis International and Louis Dreyfus - has worked on the DFS to this point.

Kore said it is also working on its own with the consortium to optimise the capital costs of the project prior to finalisation of capital and operating cost estimates.

Brad Sampson, who took over as chief executive at Kore in June, said: "The potential for Kola and the wider Sintoukola basin to be a globally important producer of potash is clear.

“As the DFS is concluded it is important to achieve the optimal project design and engineering and position Kola to realise its potential."

"We are working closely with the French Consortium, the government of the Republic of Congo and our advisers to finalise the delivery of the DFS to generate long-term value for shareholders."

Amendments to the Kola environmental and social impact assessment have been submitted to Republic of Congo authorities, while the Mining Convention for the Kola project is now being reviewed by the country’s parliament for approval.

Kola has a measured has a Measured and Indicated Sylvinite Mineral Resource of 508 Mt grading 35.4 % KCl.

Cash at the end of June was US$14.2mln.

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