Congolese authorities have issued two environmental permits to Kore Potash to mine the Dougou and Kola deposits at its Sintoukola potash project. The mining company now has the necessary authorizations to start construction.
The granting of these 25-year licenses is good news for the company, as it represents a solid mark of support from the Congolese authorities. The licenses provide the company with some security in the development of its project by aligning with the duration of the mining permit.
“The 25-year period is now aligned with the calendar of the mining agreement between Kore and the Congolese government […]. This provides greater certainty to all parties, ” Brad Sampson, CEO of Kore Potash said, adding that a pre-feasibility study for the extension of the Dougou deposit (DX) will be completed this quarter and then integrated into the current allowed with the agreement of the authorities.
According to current estimates, the DX project involves the exploitation of 400,000 tonnes of potash per year over an estimated mine life of 17 years. It is expected to generate $ 74 million in cash flow and the invested capital would be recovered after four and a half years.