South Harz Potash Ltd (ASX:SHP) is one step closer to bringing its German potash development to fruition thanks to a pivotal scoping paper.
Officials at the Thuringian state regulatory authority are weighing brownfield and greenfield development options for SHP’s flagship Ohmgebirge project — outcomes that will pave the way for a full spatial planning application in Q4.
South Harz’s preferred brownfield scenario is expected to curb its capital expenditure, leveraging existing potash mining infrastructure at the nearby Bernterode shafts.
SHP’s scoping paper incorporates two potential development pathways.
“Milestone juncture”
South Harz CEO and managing director Luis da Silva congratulated the South Harz team for bringing the Ohmgebirge scoping paper to regulators.
“It is a milestone juncture as we commence the permitting process for Ohmgebirge,” he explained.
“We are also excited to present a credible brownfield development option for Ohmgebirge, with all the accompanying capital cost and timetable benefits that this can deliver.”
South Harz regional director Babette Winter said: "While we benefit from excellent local and regional support for critical potash mining activities, our commitment to best-in-class development and operating practice remains unwavering.
“This is reflected in our overarching approach to the spatial planning approval process and our interaction with all governmental and regulatory stakeholders as part of this.
“We thank the authorities for their dedication and the constructive dialogue as we strive to develop the optimal balance between economic development with environmental best practices.”
Next steps
Thuringia's spatial planning approval process is designed to ensure that land use complies with the objectives and principles of regional planning and spatial development.
The scoping paper includes a description of the project and the envisaged study frameworks for a spatial impact study, environmental impact assessment, landscape management plan and species protection report.
Now the paper has been submitted, Thuringian state regulatory authorities will brief the affected municipalities, lower authorities, public interest groups and other stakeholders and schedule a public hearing.
The feedback from this hearing, and from regulators directly, may lead to some pre-submission changes in the Ohmgebirge spatial planning application (which South Harz is preparing).
Ultimately, SHP believes this initial consultation period will provide further valuable feedback as it readies the spatial planning application for a Q4 submission.
The final application will cover one of the two development scenarios on the table, with authorities expected to make a decision on the project’s development within six months of submission.
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