South Harz Potash enters into non-binding MOU with Euroports
The MOU will see SHP and Euroports advancing commercial discussions towards a long-term agreement for the storage and export of potash product
SHP plans to supply key potash markets such as Brazil and North America to account for seasonality
Special Report: The MOU between the two parties is expected to deliver multiple potential export infrastructure options for South Harz’s Ohmgebirge potash project in Central Germany.
South Harz Potash (ASX:SHP) is in the middle of progressing pre-feasibility study (PFS) works at the Ohmgebirge project in Central Germany, a region with a century-long history in potash mining and a positive view of future operations.
Map of Ohmgebirge and other projects in Central Germany. Pic: Supplied (SHP)
The PFS is about 90% complete and remains on track for completion in early Q2 but, in the meantime, the SHP team continues to tick off other important milestones.
During the December quarter, the company signed a non-binding MOU with Deusa for the utilisation of an existing Bernterode shaft, highlighting the strong capacity Ohmgebirge possesses in leveraging existing regional infrastructure.
Deal with major European ports operator
SHP has now entered into another non-binding MOU, this time with major European ports operator, Euroports, for export infrastructure options at Ohmgebirge.
The deal emphasises overland transport advantages possessed by SHP relative to key suppliers into potash export markets.
It also contemplates the two parties advancing commercial discussions towards a potential long-term agreement for storage, handling and export of potash product through one of Europort’s facilities in Rostock, Germany or Antwerp, Belgium.
Location of Europort’s facilities relative to Ohmgebirge. Pic: Supplied (SHP)
Supplying key markets in Europe, Brazil and North America
“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 markets such as Brazil and North America to account for seasonality,” SHP managing director Luis da Silva says.
“Being located close to existing port infrastructure delivers South Harz a substantial overland transport advantage relative to major established producers in Canada and eastern Europe, some of which need to rail product up to 2,000km to their export facilities.”
Euroports, headquartered in Belgium, is a leading port-centric platform with a global network of circa 50 port terminals across Europe and China.
It handles more than 70Mt of paper, pulp, fertilisers, agribulk, sugar, metals and minerals, while capturing fast-growing products like wind turbines, biofuel, lithium and recycling waste.
This article was developed in collaboration with South Harz Potash, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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