Canadian MagIndustries To Construct 1.2 Million Ton Per Year Potash Fertilizer Project in Congo

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Researched by Industrial Info Resources (Sugar Land, Texas) -- MagIndustries Corporation (TSX: MAA) (Toronto, Ontario) recently announced that its subsidiary company MagMinerals just obtained the right to mine for potash in Republic of Congo for 25 years. Therefore, MagMinerals will be able to carry out potash mining in Kouilou region and establish a 1.2 million ton per year potash fertilizer project.

It is reported that the site where MagIndustries chose to build the 1.2 million ton per year potash project is located 16 kilometers away from Congo's important Atlantic deep water port city of Pointe-Noire. This potash plant will be close to a salt plant, which now operates five commercial salt wells. MagIndustries has completed the feasibility study for its first phase project. According to the feasibility study report, a 600,000 ton per year granular K60 potassium carbonate unit will be built. With accounting costs excluded, the budget into this first phase project is $723 million. Upon the completion of the first phase project, MagMinerals will build another similar potassium carbonate plant to finally bring the project's annual capacity to 1.2 million tons a year.

The potash exploration area MagIndustries is working on used to be a commercial conventional underground potash mine in the 1970's. It was then abandoned due to water corrosion problems. MagIndustries has the full ownership of this deposit. MagMinerals said that research has shown that the potash reserve here could reach billion tons.

A preliminary potash sales agreement was signed by MagIndustries with Swiss Ameropa AG. Ameropa will purchase 100% of the potash from this mine by MagIndustries.

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