The company’s Ohmgebirge project is right on the doorstep of the European market. Pic: via Getty Images.
Mining
South Harz Potash is 75% of the way through the Pre-Feasibility Study (PFS) update for its flagship Ohmgebirge potash development project in Germany.
Fertilisers like potash are crucial for agriculture as it improves water retention, yield, nutrient value, taste, colour, texture, and disease resistance of food crops.
Ohmgebirge is part of the wider South Harz project portfolio in Germany, which hosts a globally large-scale potash resource estimate of 5 billion tonnes at 10.8% K2O of inferred resources and 290 million tonnes at 13.5% K2O, 89% in the indicated resource category.
It’s a huge basin with project upside, comparable in size to BHP’s US$10bn Jansen project in Canada.
It’s also located favourably within central Europe, with South Harz Potash (ASX:SHP) confident its project is well positioned to enable rapid economic development across multiple deposits.
First cab off the rank is Ohmgebirge, where a PFS is considering a potential brownfield development pathway utilising existing regional shaft infrastructure delivers substantial time and capital cost advantages.
The scope of the study also includes the analysis of options to limit peak capital requirements of the project, while retaining attractive overall economics, such as alternative approaches to capacity design, including a potential phased approach to capacity build-up.
All key workstreams are on time and budget, with overall progress now past 75% completion.
The PFS is on track for scheduled completion during December 2023.
This update follows confirmation last week that the initial spatial planning consultation and hearing process for Ohmgebirge was completed with key local, NGO and regulatory stakeholders and no significant concerns or objections were raised.
South Harz continues to compile the full spatial planning application for the project, which remains on track for submission to the regulator in early Q4 CY 2023.
This article was developed in collaboration with South Harz Potash, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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