South Harz Potash Ltd (ASX:SHP) is nearing completion of the comprehensive pre-feasibility study (PFS) for its flagship Ohmgebirge Potash Development in central Germany.
Three-quarters complete
The study, helmed by South Harz's chief operating officer Lawrence Berthelet in collaboration with global potash development leader Hatch, has passed the 75% completion mark and is scheduled for delivery in December 2023.
All key PFS workstreams have made satisfactory progress, within the specified budget and time frame.
The study is exploring the brownfield development pathway, which would use existing regional shaft infrastructure. This approach could significantly reduce time and capital expenditures.
Engineering studies have been progressing for brownfield and greenfield development options.
The engineering team, which includes Hatch, K-UTEC, ERCOSPLAN and Micon, has achieved several key milestones.
It completed the mine plan in September, focusing on both drill and blast and continuous mining methods. It also finalised the total utilities estimates, including power, water and gas, based on the final mass balance.
Dynamic modelling for raw ore and product storage facilities has been completed and a decision has been made to take advantage of stabilising power prices and adopt Mechanical Vapour Recompression (MVR) over Multiple Effect Evaporator (MEE) for steam.
Additionally, the loadout and rail engineering aspects have advanced to the estimates stage.
Regulatory aspects proceeding apace
South Harz has also made strides in the regulatory landscape.
Last week, the company confirmed that the Ohmgebirge permitting process is on schedule. It successfully completed the initial spatial planning consultation and hearing process, encountering no significant objections from local, non-government organisations (NGO) and regulatory stakeholders.
Submission of the full Spatial Planning Application is slated for early in the last quarter of the 2023 calendar year, with a mandated decision expected within six months.
The PFS will also investigate methods to limit the peak capital requirements of the project while ensuring attractive overall economics.
This includes not only the brownfield pathway but also alternative capacity design approaches, potentially incorporating a phased build-up strategy.