African Potash seeks to create trading platform in Eastern and Southern Africa
African Potash (LON:AFPO) unveiled Thursday it is holding talks with a free trade union for twenty African member states, the Common Market for Eastern and Southern Africa.
The goal of the negotiations, said the potash producer, is to create a platform for the mining, production and distribution of fertilizer focused on the Eastern and Southern Africa region and beyond.
Talks are centred on exploring financing options and identifying ways to exploit the company’s existing resources, said African Potash, adding that further details and the development of any strategy to expand operations and markets will be announced in due course.
African Potash owns Lac Dinga potash project in the Republic of Congo, which is located in a highly prospective area. The venture is adjacent to the Sintoukola licence held by Elemental Minerals Limited (ASX,TSX: ELM) and the Makola licence of Evergreen Resources Holdings.
Africa is one the most important markets for fertilizers, having the potential to increase the value of its annual agricultural output to $500 billion by 2020 according to the African Development Bank (ADB).