African Potash enters joint venture with SG

African Potash announced on Friday that, under a memorandum of understanding with the government of the Republic of Congo signed on 2 August, it has entered into a joint venture agreement with SG.

The AIM-traded firm described SG as an African-focussed investment and project development group.

It said the agreement was to develop, operate and commercialise the mineral opportunities and downstream resources in the Republic of Congo for the production of fertiliser, with each party owning 50% percent of the venture.

“The combination of proven key 'in situ' fertiliser components, along with existing and planned infrastructure in the Republic of Congo is significant,” said African Potash executive chairman Chris Cleverly.

“The proximity of the port facilities at Pointe Noire ultimately offers access to international markets.”

Cleverly said the company was “looking forward” to working with its partner, which he said had an “excellent track record” of building resource-based and other businesses in the Republic of Congo.

“This agreement represents a further step in our strategy to build a vertically integrated fertiliser business from initial resource through to selling, using blockchain technology, direct to the farm.”