Mineral-rich Congo poised to become leading fertilizer hub

Strategically located Democratic Republic of Congo (DRC), which is endowed with the key required raw materials, is poised to be a world leader in fertilizer production, according to Stéphane Rigny, the executive chairman of Kanga Potash.

Kanga Potash, which has received its license to mine and produce potash in DRC, announced in July it was seeking to raise about $500m for the first phase of its potash development project north of Pointe Noire. About 60% of the amount will be debt and 40% equity, including some mezzanine finance, Rigny said. A “significant” part of the equity has already been raised, he says, and the company has received letters of intent on debt financing from “several parties.” The project, located on the west coast of Central Africa, to the west of the mighty Congo river, is now moving to pre-construction phase.

“The Republic of Congo will become a world leader in the production of fertilizers,” says Rigny in a recent interview. “We have discovered the thickest carnallite seams ever drilled anywhere in the world. The seams of recoverable carnallite are in the order of 210 m thick,” added Rigny. Carnallite is a mineral consisting of hydrous potassium-magnesium chloride that is an important source of potassium and the thick recoverable carnallite is at a depth of about 1.000 meters.

“The entire planet is now very focused on food security, which is a major concern for most parts of the world if not all parts of the world,” says Rigny who sees fertilizers as very important. “It’s almost an existential debate with the fertilizer paradigm shifting in the same way as our world paradigm is shifting. We expect huge growth in agriculture and strong demand for fertilizers,” the Kanga Potash executive chairman concludes.