South Harz Potash Ltd (ASX:SHP) is progressing well with its pre-feasibility study (PFS) for its flagship Ohmgebirge Potash Development in central Germany.
Key workstreams are advancing on schedule with overall progress now past 85% completion. The company is also advancing technical and commercial discussions with neighbouring Bernterode owner, NDH-E/DEUSA, for long-term utilisation of the existing shaft and associated infrastructure in developing Ohmgebirge.
The final PFS delivery is on track to be completed in early Q2 CY2024 and will include the Bernterode shaft and infrastructure utilisation as a base case development pathway.
A comprehensive Ohmgebirge Spatial Planning application is to be submitted shortly to the key regulator.
The PFS process is being led by highly experienced South Harz chief operating officer (COO) Lawrence Berthelet in conjunction with global potash development leader Hatch.
SHP continues to hit milestones
The combined engineering team's (Hatch, K-UTEC, ERCOSPLAN and Micon) effort has delivered SHP several key milestones.
These include:
- Mine plan nearing definitive-level accuracy, with ongoing optimisations driving further efficiencies.
- Updated Ohmgebirge mineral resource estimate and maiden ore reserve declaration approaching completion.
- Baseline process flow sheet, including mass balance, following bulk sample optimisation evaluations, at 90% definitive feasibility study level.
- Surface water containment design finalised including 100-year run-off event capture capacity.
- Power, water and gas supplies have been identified and a preliminary estimate for connection has been provided by each of the local utility supplier. All equipment and contract work required have been included in the estimate.
- Product storage and loadout strategy optimized to maximise rail freight utilisation, thereby reducing truck traffic and minimising GHG emissions.
- Ongoing value engineering activities driving capital and operating cost efficiencies for a brownfield development.
"We continue to drive through the advanced stages of the Ohmgebirge PFS and I am very pleased with how all the major workstreams are coming together,” South Harz managing director and CEO Luis da Silva said.
“This includes our ongoing discussions with NDH-E/DEUSA and their implications for the capital-efficient brownfield development pathway we are pursuing as the base case in both our spatial planning submission and PFS evaluation.”
Aiming for optimal outcomes
Discussions on both technical and commercial aspects are progressing with NDH-E/DEUSA, the owner of the adjacent Bernterode shafts, aiming to achieve the best possible engineering, environmental, and economic results for the Ohmgebirge project under a brownfield development approach.
Additionally, the potential for further business development, enhancing technical and commercial collaboration between the two operations, is being considered.
The PFS is also examining strategies to minimise the peak capital requirements of the project while maintaining its overall economic appeal. This includes the exploration of different capacity design alternatives and the possibility of a phased approach to expanding capacity, in addition to the brownfield development option using Bernterode.
South Harz anticipates filing a detailed Spatial Planning application for Ohmgebirge shortly with the Thuringian General State Administration Authority (TLVwA), the primary regulatory body. In accordance with the German Spatial Planning Act, the TLVwA will have a six-month statutory period to reach a decision on this application.