(Ecofin Agency) - The Republic of Congo has an underdeveloped mining sector; a situation that contrasts with its vast mineral resources. This situation could, however, change in coming years, as the country ramps up efforts to exploit its resources and diversify its economy.

This quarter, Kore Potash plans to sign an Engineering, Procurement, and Construction (EPC) contract for its Kola Potash project in the Congo Republic.  The UK-based mining company unveiled its plan in its financial results published at the end of March. The firm also stressed that it is in talks with the Power China group, which submitted a proposal last February.

According to an agreement reached in June 2022 with Power China, the company is to develop a 2.2 million-tonne processing plant to operate the mine for 31 years. The initial investment required is estimated at $1.83 billion for 40 months of construction work. Negotiations have been ongoing for several months to mobilize funds, but no date has been provided for the final investment decision.

The Kola project could speed up Congo’s economic diversification and transform its mining sector. The country, at the moment, mostly exploits oil resources. Kore Potash forecasts annual revenues of $773 million and an EBITDA of $583 million for the project once it comes online.