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Kore Potash plc (ASX:KP2) advanced its Formal Sale Process in Q2 2026, with two parties actively assessing a full acquisition of the company. The potash developer, holding a 97.46% stake in the Kola Potash Project in the Republic of Congo, continues to adapt to regulatory shifts following the April 2026 ratification of a new Mining Law and recent ministerial changes in Congo's government. As of 30 June 2026, Kore Potash maintained approximately US$7.5 million in cash reserves.
Key Points
- Kore Potash plc (ASX:KP2) owns 97.46% of the Kola Potash Project in the Sintoukola Basin, Republic of Congo.
- Two strategic parties are engaged in a Formal Sale Process to evaluate acquiring all issued and to-be-issued shares of the company.
- President Sassou Nguesso signed a new Mining Law on 18 April 2026 (Law No. 01-2026); Kore Potash is consulting with the Republic of Congo government to clarify its mining convention's application under the new law.
- As of 30 June 2026, Kore Potash held about US$7.5 million in cash, with Front-End Engineering Design ongoing for underground mine design due to a vertical hoisting system supplier change.
Kore Potash's Potash Assets and Strategic Role in Congo
Kore Potash plc is a key potash developer with significant mineral holdings in the Republic of Congo, owning 97.46% of the Kola Potash Project and the Dougou Extension (DX) Potash Project, both situated in the Sintoukola Basin. These projects offer major potash development opportunities in a historically underexplored region for this vital commodity. The company's focus aligns with global demand for potash, essential for fertiliser production and global food security.
The potash industry has drawn sustained international attention due to supply chain concerns and the need for stable agricultural inputs. Kore Potash's projects benefit from operating within a producing mining jurisdiction that provides regulatory and operational frameworks. Their portfolio approach across Kola and Dougou Extension projects reflects ongoing development efforts amid evolving regulatory and permitting landscapes.
Two Parties Progress Acquisition Talks via Formal Sale Process
In November 2025, Kore Potash announced the start of a Formal Sale Process after receiving multiple acquisition interests for all issued and to-be-issued shares. By Q2 2026, the interested parties shifted: one of the original two parties withdrew on 27 February 2026 due to internal reasons, suspending its acquisition interest.
Nonetheless, a new party entered the process on 8 June 2026, maintaining two active parties evaluating the acquisition and conducting due diligence. This Formal Sale Process represents a significant corporate milestone that could reshape Kore Potash's ownership and strategic direction. CEO André Baya highlighted that the remainder of 2026 will be "highly significant" as the company advances the Kola Project.
Ratification of New Congo Mining Law and Government Reshuffle
The Republic of Congo implemented major mining regulatory changes during the quarter. Presidential elections on 15 March 2026 resulted in President Sassou Nguesso's re-election with over 94% of the vote. Subsequently, a ministerial reshuffle replaced Minister of Mines Pierre Oba with Fiacre Opo, formerly Director General of Mines, marking a key leadership change in mining oversight.
In April 2026, Parliament ratified a new Mining Law signed by President Sassou Nguesso and published in late July 2026 (Law No. 01-2026). This new mining code establishes a fresh regulatory framework for Kore Potash's operations. The company affirms the validity of its mining convention, ratified under the previous law, which includes a stabilisation clause protecting its rights against adverse impacts from new laws. Kore Potash is actively engaging with the Republic of Congo government to ensure clear, mutual understanding of the convention's application within the new legal framework, demonstrating commitment to constructive government relations while safeguarding contractual rights.
Government Confirms 10% Stake and Initiates Legal Formalities
The Republic of Congo government confirmed that the Ministry of Finance will hold a 10% shareholding in both Dougou Potash Mining S.A. (DPM) and Kola Potash Mining S.A. (KPM). Kore Potash has initiated legal procedures to formalise this shareholding. This arrangement clarifies government participation and defines regulatory relationships between Kore Potash and the Congolese state.
This clarity on ownership and governance is critical for strategic partners and financiers assessing involvement in the Kola Project. The ongoing legal formalisation reflects government progress in establishing the project's ownership framework.
Front-End Engineering Design Advances After Supplier Change
Engineering progress continued on the Kola Project during the quarter, with Front-End Engineering Design (FEED) focused on underground mine design. The continuation of FEED was required due to a change in the vertical hoisting system supplier, necessitating design adjustments to ensure system compatibility and optimisation.
The vertical hoisting system is vital infrastructure for underground potash extraction. Changes in supplier specifications impact overall mine design, prompting ongoing FEED work. This progress underscores that technical development continues alongside the Formal Sale Process and regulatory engagements. Completing FEED is a key milestone that will support future construction planning and financing discussions.
Environmental and Social Impact Assessment Paused Pending Design Finalisation
Environmental and social impact assessment (ESIA) activities for the Kola Project have been temporarily halted as the company awaits final design specifications from potential strategic investors. The ESIA update began in 2025 following design optimisations by EPC contractor PowerChina. Baseline environmental data collection by SRK, FFMES, and ELINA was completed between October 2025 and early 2026. Social baseline data collection, led by Synergy and ELINA, was intentionally left incomplete in October 2025 anticipating design changes that could affect the Relocation Action Plan (RAP), essential for the D e9claration d'Utilit e9 Publique (DUP).
ESIA work resumed in April 2026 but was suspended again in May 2026 due to uncertainty about final design changes linked to the Formal Sale Process. This pause reflects a strategic decision to finalize investor-driven design parameters before completing environmental and social studies. The RAP and DUP are critical for land acquisition in Congo and essential to project development. ESIA activities are expected to resume once the Formal Sale Process concludes and design clarity is achieved.
OWI-RAMS Financing Package and Potential Funding Partners
Kore Potash continues discussions with OWI-RAMS GmbH regarding the Kola Project financing package based on term sheets signed on 10 June 2025. The financing strategy focuses on enhancing Kore Potash's management capacity and securing an experienced contract operator and strategic partner in potash mining and processing.
OWI-RAMS is also engaging with two development finance institutions (Potential Financiers) interested in providing political risk insurance and debt funding. Both financiers stress the importance of appointing a qualified contract operator and strategic partner. The EPC contract with PowerChina includes early works and validation testing. Kore Potash is in talks with two new Chinese contractors for a contract operator role post-construction, a requirement from Potential Financiers to reduce project risk. The contract with UMS Projects, winner of the Owner's Project Team Request for Proposal, awaits Potential Financiers' approval before execution. These multi-faceted engagements highlight the complex financing and operational arrangements needed for large-scale potash projects.
Cash Reserves and Corporate Updates Post-Quarter
As of 30 June 2026, Kore Potash held approximately US$7.5 million in cash, supporting ongoing operations including engineering, government liaison, and Formal Sale Process expenses. The company did not provide detailed cash burn or runway estimates. Cash adequacy relative to planned activities and sale process timing remains a key consideration for stakeholders.
During the quarter, Kore Potash Limited was deregistered as an Australian company effective 28 June 2026, reflecting changes in corporate structure and domicile. The company held its Annual General Meeting on 30 June 2026, addressing governance and other shareholder matters. These events represent routine corporate governance activities within the reporting period.
Sector Overview and Global Potash Supply Implications
Kore Potash's Kola Project development takes place amid sustained global potash demand driven by agriculture and food security. Potash is a crucial fertiliser nutrient supporting worldwide crop production. CEO André Baya emphasized that "Kola's importance, scale and its geographical location should not be underestimated at a time when the security of the world's food supply remains at the mercy of global disruptions," underscoring the project's strategic value.
Kore Potash's assets in the Republic of Congo offer potential to diversify and strengthen global potash supply. The Sintoukola Basin is recognized for significant potash development potential. Kore Potash's advancement of Kola and Dougou Extension projects occurs within a sector marked by concentrated global production and steady agricultural demand. The ongoing Formal Sale Process, regulatory changes, and financing efforts reflect the broader dynamics shaping global potash markets and the critical importance of secure production capacity.
