South Harz Potash Ltd (ASX:SHP) is on the verge of wrapping up the pre-feasibility study (PFS) for its Ohmgebirge Potash Development in central Germany.
The company has reached its 90% completion milestone for the PFS, with final delivery anticipated early in the second quarter of 2024.
Using existing shaft infrastructure
One of the aims of the study is to leverage existing infrastructure at the Bernterode shafts, owned by NDH-E/DEUSA International GmbH (Deusa). This is a key plank of the project’s sustainable development ethos.
The collaboration between South Harz and Deusa was struck up by a non-binding Memorandum of Understanding (MoU) signed in November 2023.
This MoU outlines a path towards a definitive commercial agreement, granting South Harz exclusive access and utilisation rights to the Bernterode shaft and related infrastructure until March 31, 2024.
This strategic partnership is expected to offer substantial advantages, including reduced time and capital expenditure, as well as a smaller environmental footprint compared to new shaft construction.
Capital, footprint and time efficiencies
Chief operating officer Lawrence Berthelet said: "We continue to make strong progress on both our collaborative activities with Deusa and approaching completion on remaining PFS workstreams.
“It is an extremely busy but exciting time at South Harz as we advance closer towards targeted finalisation of a brownfield development pathway for Ohmgebirge that can deliver substantial capital, footprint and time efficiencies.”
The detailed technical and commercial discussions between South Harz and Deusa are progressing well, focusing on engineering, environmental and economic considerations for the project.
The plan involves storing raw ore adjacent to the shafts for purification, followed by transportation via a short pipeline to the processing site near the Bernterode railway siding, which all speak to the project's comprehensive infrastructure planning.
PFS workstreams are advancing as scheduled, with global engineering consultant Hatch plc spearheading the capital and operating cost estimations.
This includes a thorough analysis of utility requirements, equipment sizing, installation costs, and supplier quotations, ensuring the study's accuracy and reliability.
The Spatial Planning Application for Ohmgebirge, submitted in early December 2023, is being evaluated, with a decision expected in Q2 2024.
As the Ohmgebirge PFS nears its final phase, South Harz Potash is poised to solidify its position in the potash industry.
The company thinks the project represents a leap forward in potash mining that exemplifies the potential for international collaboration in achieving efficient and sustainable resource development.