By: Energy capital & power

UK mining company Kore Potash has signed a funding agreement with Swiss investment firm OWI-RAMS GMBH for a $2.2 billion loan. The financing will support the development of the Kola Potash Project in the Republic of Congo. The project is scheduled to begin production in January 2026, with an expected annual output of 2.2 million tons over a 23-year mine-life.

The agreement includes the provision of 70% of the loan ($1.53 billion) via a Senior Secured Project Facility and 30% ($655 million) in the form of a Royalty Finance Facility. OWI-RAMS GMBH will receive a certain percentage of revenue generated from the project through its entire production lifespan under the royalty arrangement. The Swiss company will also have the right to acquire up to 100% of the potash produced from the Kola Project.

“As the world seeks to strengthen agricultural resilience and secure essential nutrient supply chains, Kola is poised to become a globally significant source of potash. By securing a less dilutive funding structure aligned with long-term sustainability and value creation, we are safeguarding shareholder interests while advancing food security in Africa and beyond,” stated David Hathorn, Chairman of Kore Potash.

The financing deal follows Kore Potash’s December 2024 engineering, procurement and construction agreement for the project, signed with construction firm PowerChina International Group Limited. The investment aligns with OWI-RAMS GMBH’s strategy to contribute to global food security and economic growth in Congo amidst the increasing global demand for potash for fertilizer production.