The Hinda Project (Hinda) is based on a sedimentary-hosted phosphate deposit, located approximately 40km northwest of the city of Pointe-Noire in the Republic of Congo and includes the Hinda Phosphates Exploitation Licence that covers 263.68 km2 of the country’s coastal basin.

Hinda, previously owned by Cominco through its wholly owned subsidiary, Cominco S.A., has been acquired by Kropz.

Hinda, believed to be the world’s largest undeveloped phosphate reserve, has a substantial JORC-compliant Mineral Resource base totalling 675.8Mt at a grade of 10% P2O5, with 86% included in the Measured and Indicated categories. It is supported by a substantial body of mineral processing test work, conducted as part of, and subsequent to, historical feasibility studies.

A definitive feasibility study, completed in 2015, targeted the production of 4.1Mtpa of phosphate concentrate at a concentrate grade of 32% P2O5. On the technical and economic parameters defined, the unleveraged NPV (10% discount rate) was US$1.85 billion, with an associated IRR of 38%.

Kropz’s Directors believe that in consideration of the long-term supply/demand conditions of the phosphate market and the current economic market conditions, an initially smaller scale project targeting production between 1.0Mtpa and 1.2Mtpa (potentially increasing to 2.0Mtpa) can be developed for a significantly lower level of upfront capital investment with similar economic returns.

Kropz has prepared a phased programme of work to review and verify the underlying design parameters, assess various optimisation opportunities and develop a proposed single solution to feasibility study level within 12 months.