Potash development company Kore Potash has received an interim report of the results of an optimisation study into its 97%-owned Kola potash project, in the Sintoukola basin, in Congo-Brazzaville, from the Summit Consortium.

The Kola optimisation study is on track for successful completion in the first quarter of 2022.

The consortium has presented a set of documents that collectively form the interim report, which has been compiled following Summit’s review of the definitive feasibility study (DFS) into the Kola project.

The interim report details the identified optimisation opportunities and confirms the progress Kore has made, to date, towards reducing the capital cost of Kola.

It also details optimisation opportunities that should substantially reduce the capital cost of Kola compared with the capital cost set out in the DFS.

The potential capital cost reduction opportunities cover mining, mineral processing, infrastructure, utilities and indirect costs.

Thus far, 53 capital cost reduction opportunities have been considered.

Further capital reduction opportunities will be reviewed prior to completion of the optimisation study.

The consortium remains on track to present a financing proposal for the full Kola construction costs in the first half of 2022.

“We are pleased at the quantum of potential capital cost saving initiatives being identified in the interim report and that the process to finance Kola remains on track. We will review the interim information and proposed changes to the Kola design while the consortium continues the study.

“There are additional capital cost reduction opportunities for the consortium to consider over the next few months, and we look forward to delivery of the full study report in early 2022,” Kore CEO Brad Sampson says.

In April, Kore announced the signing of a memorandum of understanding with the consortium for the full financing of the construction of Kola.

The agreed process included the consortium completing an optimisation study on Kola and, on completion of a successful study, providing an engineering, procurement and construction contract proposal along with a potential royalty and debt financing proposal for the full construction costs of Kola.

The study is being undertaken by the key engineering and construction partner of the consortium, Sepco Electric Power Construction, and has key goals to add value to Kola through reducing the capital cost of Kola, with a target of less than $1.65-billion, and shortening the construction schedule with a target of 40 months.