Business
EPC Update
EPC Update.
About this update from Kore Potash Plc
[{"type":"text","content":"\n\n24 June 2024\n \nKore Potash Plc\n(\"Kore Potash\" or the \"Company\")\n \nEPC update\n \nKore Potash plc, the potash development company with 97% ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located in the Republic of Congo, further advises on the state of negotiations of the Engineering, Procurement and Construction (\"EPC\") proposal and draft EPC contract with PowerChina International Group Limited (\"PowerChina\").\n \nKola Construction Contract\n \nThe Company lodged its Quarterly Activities Report on 29 April 2024 reaffirming that PowerChina delivered their EPC proposal and draft EPC contract on 6 February 2024 (refer Announcement dated 9 February 2024). The Company also advised that Kore Potash and PowerChina had commenced further detailed negotiation on the EPC proposal and draft EPC contract, and that the parties remained on track for the signing of full EPC documentation in Q2 2024 with the Company meeting PowerChina senior officials in Beijing in early May 2024.\n \nThat meeting took place as planned and progressed on many points. However, due to the high complexity of the Kola project which involves underground mining, processing and offshore transhipment, the discussions involved many specialist engineers, financiers and lawyers with the objective of devising a fixed price contract which allows only minimal possibilities for variation. As a result, further important issues have been raised recently around completion and performance guarantee tests which now need to be further discussed and agreed on with PowerChina.\n \nA further session with PowerChina in either Beijing or Dubai is now planned for early July 2024. Furthermore, PowerChina has expressed interest in operating the mine after construction and the Company now also expects to receive a draft Operating proposal from the Chinese company in July 2024.\n \nThe Company will further update the market on the progress of negotiations and results of the next meeting with PowerChina in due course.\n \nAs previously announced on 28 March 2024 the Company will be required to raise further funds for the working capital requirements for the period up to signing full EPC documentation and the financing proposal for the complete construction of Kola from the Summit Consortium.\n \nThis ...