South Harz Potash Ltd (ASX:SHP) has signed a non-binding memorandum of understanding (MoU) to advance long-term export access with major European ports operator, Euroports, to export potash product from South Harz’s flagship Ohmgebirge Potash development in central Germany.
Much of the company’s potash output from the Ohmgebirge project will feed European markets, but with an agreement with Euroports it can also supply key export markets, accounting for seasonality of demand.
Working towards a long-term export agreement
Under the MoU, South Harz and Euroports will advance commercial discussions towards a potential long-term agreement for the storage, handling and export of potash product from Ohmgebirge through one of Euroports’ operated facilities in Rostock, Germany, and/or Antwerp, Belgium.
South Harz managing director and CEO Luis da Silva said: "While we plan to sell much of our potash output from Ohmgebirge into proximate European demand, it is also anticipated that Ohmgebirge will supply key export markets such as Brazil and North America to account for seasonality (as outlined in the preliminary marketing strategy we presented in the Ohmgebirge Scoping Study).
“Being located close to existing port infrastructure (approximately 450 kilometes by rail or road to Rostock, and 470 km to Antwerp) delivers South Harz a substantial overland transport (and associated carbon emissions footprint) advantage relative to major established producers in Canada and eastern Europe, some of which need to rail product up to 2,000 km to their export facilities.”
The location of the export facilities, along with the key overland transport routes linking them to Ohmgebirge.
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