Ganfeng Lithium's African potash project finalized with a one-off capacity of 2 million tons, set to commence production in 2027.

On August 5, Ganfeng Lithium (002460) made an official response on the Shenzhen Stock Exchange's interactive platform regarding the market's focus on the Koumou (Bukoumashi) potash project in the Republic of the Congo. Addressing differing versions circulating in the market, such as a first phase of 600,000 tons and phased construction, the company clarified that the Koumou Potash Project will be constructed with a capacity of 2 million tons per year of potassium chloride in a single phase, and the project is expected to commence production in 2027.

There were previously divergences in market information, with some sources claiming the project would be implemented in phases, with only a 600,000-ton scale built in the first phase. The listed company has now directly clarified this, finalizing the overall construction plan and timeline for the project.

Project boasts outstanding resource endowments; large-scale overseas potash base in Africa steadily advancing

The Koumou (Bukoumashi) potash project is located in the Loango district of Kouilou Province, Republic of the Congo, near Pointe-Noire Port. It enjoys a natural locational advantage for sea transport. Within the mining rights, the potassium chloride resource volume is approximately 1.01 billion tons, classifying it as a globally large, high-quality potash deposit. The ore is also associated with comprehensively utilizable resources such as bromine. Ganfeng Lithium holds a 50% interest in the project through a joint venture entity, serving as the core investor.

The project has completed the key engineering milestone of the shaft bottoming, with vertical shaft excavation reaching the designed mining level. Construction has transitioned from shaft sinking to underground roadway development and the construction of supporting facilities for the processing plant. The mining area features complex geological conditions, characterized by a rift-type metallogenic structure, and carries a risk of water inrush near the sea area. The mining technical difficulty is higher than that of conventional potash mines, and the project construction faces multiple geological challenges.

Lithium giant crosses into potash to create a second resource growth curve

As a global leader in lithium, Ganfeng Lithium is actively deploying overseas potash resources and advancing a diversified resource strategy in addition to deeply cultivating its core lithium mining and lithium salt businesses. China has a high dependence on imports for potash. Once the project is put into operation, its products can participate in the global potash trade and also supply the domestic market, broadening China's overseas supply sources for potassium chloride, which holds positive significance for the security of domestic potash supply.

According to the plan, in addition to the main product of potassium chloride, the project can also comprehensively recover by-products such as bromine. Relying on its location near the Atlantic port, finished products can be directly shipped by sea to major potash consumption markets such as China and Brazil, offering certain advantages in logistics costs.

Production timeline possesses flexibility; overseas mines still face uncertainties

Based on local public information, the project plans to conduct joint trial production by the end of 2026, with the goal of commercial full production set for 2027, which is consistent with the tone of the listed company's current response. Overseas mining projects are influenced by multiple factors such as local infrastructure, geological construction, and supply chains, so the actual progress toward production still carries some uncertainty.

Market analysis suggests that 2 million tons of potassium chloride represents a large-scale potash production capacity. If successfully realized, it will become an important performance increment for Ganfeng Lithium beyond its lithium business, enriching the company's resource business portfolio. The company will continue to update the project's construction progress on the investor interaction platform and through announcements.

Source: Shenzhen Stock Exchange Interactive Easy, public industry data; does not constitute investment advice