Kore Potash Considers Sale or New Funding to Advance $2B Kola Project in Congo

Kore Potash (LON: KP2) is evaluating a range of strategic options for its flagship Kola potash project in the Republic of Congo, following receipt of non-binding offers from two potential buyers. The London-listed company, which has been developing the US$2 billion project since receiving its mining licence in 2013, is now weighing a full sale of the business against potential new financing options aimed at advancing Kola toward construction. The decision follows a formal sale process launched after earlier efforts to secure a strategic partner or experienced contract operator with potash industry expertise.

The company’s shares responded positively to the development, rising 8.5 percent in early London trading before closing 1 percent higher at 3.13 pence, giving Kore Potash a market capitalization of approximately £152 million (US$198 million). The potential sale or recapitalization comes as Kore seeks to unlock the substantial economic and strategic value of the Kola project, which is designed to produce 2.2 million tonnes of muriate of potash (MOP) annually. Once operational, Kola is expected to become one of Africa’s largest and most cost-competitive fertilizer producers, providing a critical supply source for global agricultural markets increasingly dependent on potash-based nutrients.

In late 2024, Kore secured a US$2.2 billion financing proposal from the engineering consortium OWI-RAMS, which includes US$1.53 billion in debt and a US$655 million royalty component. The project also benefits from a US$1.93 billion Engineering, Procurement, and Construction (EPC) contract signed with PowerChina International Group, covering the full construction of the mine and associated infrastructure. Under current development timelines, construction is expected to begin in 2026, with first production projected about 3.5 years thereafter. This schedule aligns with the global market’s increasing demand for fertilizer feedstocks, driven by the agricultural sector’s response to rising food security concerns.

Kore Potash emphasized that remaining independent remains a viable option, with the board committed to evaluating all proposals to maximize value for shareholders and stakeholders. Management continues to highlight Kola’s long-term potential as a strategic potash asset not only for the Republic of Congo but also for the broader African continent, where fertilizer access is essential for agricultural productivity and economic resilience. Whether through a full sale or new project financing, Kore’s decision will be pivotal in determining the next phase of one of Africa’s most significant potash developments.

Mini-Glossary

• Muriate of Potash (MOP): The most common form of potash fertilizer, composed mainly of potassium chloride, used to enhance crop yield.
• Non-Binding Offer: A preliminary proposal that indicates interest but does not legally obligate the buyer to complete a transaction.
• EPC Contract (Engineering, Procurement, and Construction): A turnkey project agreement where the contractor handles all aspects of design, procurement, and construction.
• Royalty Component: A payment structure where investors receive a percentage of future project revenues.
• Potash: A potassium-rich mineral used primarily in fertilizers to promote plant growth.