South Harz Potash (ASX:SHP) has executed a non-binding memorandum of understanding (MoU) with Euroports Germany GmbH & Co. KG and Euroports Belgium NV.
South Harz Potash, which has a $17.94 million market capitalisation, says the MoU will advance commercial discussions towards a potential long-term agreement for the storage, handling, and export of potash product from South Harz’s flagship Ohmgebirge Potash Development in central Germany.
The potash product will then be funnelled through one of Euroports’ operated facilities in Rostock, Germany and/or Antwerp, Belgium.
South Harz Potash Managing Director and CEO Luis da Silva says: “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 450km by rail or road to Rostock, and 470km 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.”
Euroports is a port-centric platform with a global network of 50 port terminals across Europe and China; complemented by integrated end-to-end supply chain services including freight forwarding services through its subsidiary Manuport Logistics.
South Harz Potash is a potash explorer and developer with its flagship project sitting in the South Harz Potash District region of Germany, midway between Frankfurt and Berlin.
The project holds a ‘large-scale’ potash JORC 2012 Mineral Resource Estimate (MRE) of 5 billion tonnes at 10.6% K2O of inferred resources and 258 million tonnes at 13.5% K2O of indicated resources across 4 wholly owned project areas within central Europe.
Potash is a potassium-rich salt used to improve agricultural production, increasing the yield, water efficiency, and pest and disease resistance.
Write to Adam Drought at Mining.com.au
Images: South Harz Potash
