Projects

Overview

The Zhilyanskoye Project and Chelkar Project

KPC, through its Kazakh subsidiary Batys Kali, holds the subsoil use contracts to two potash salt deposits located in north western Kazakhstan. The following contracts are currently held by Batys Kali:

• Zhilyanskoye Project: Contract# 2891 registered on 11 December 2008 granting Batys Kali the right to explore and mine potassium magnesium salts in the Aktobe Province of western Kazakhstan (Zhilyanskoye Contract). The contract area covers 88 sq km. The total term of the Zhilyanskoye Contract is 48 years from the date on which the contract was registered.
• Chelkar Project: Contract# 2889 registered on 11 December 2008, granting Batys Kali the right to explore and mine potassium magnesium salts in the West Kazakhstan Province (Chelkar Contract). The contract area covers 779 sq km. The total term of the Chelkar Contract is 51 years from the date on which the contract was registered.

Both the Zhilyanskoye and Chelkar potash deposits were identified during exploration activities completed during the 1950 – 1960’s by geological survey teams of the former Soviet Union. Both deposits have been subjected to extensive drill campaigns during this period.

Little work was done on the projects between the mid 1960’s and approximately 2008 when Batys Kali was granted the subsoil use contracts. Batys Kali is based in Astana with a field office in Aktobe. The staff includes technical, financial, legal and permitting professionals as well as support and administrative staff which will enable the Company to rapidly advance the project development.

The Satimola Project

KPC is currently acquiring its third asset, Satimola potash deposit, which is a world-class advanced exploration project located in the West Kazakhstan Province.

The Satimola project has a sub-soil right of approximately 246 sq km and is located close to KPC’s Chelkar deposit. It has a JORC Mineral Resource Estimate of 6 billion tonnes at 10% K2O cut-off (3.1 billion tonnes Indicated Resources grading 16.2% K2O and 2.9 billion tonnes Inferred Resources grading 14.7% K2O), according to the Independent Geologist Report by produced by Tetra Tech in December 2014.

The Satimola project is one of the world’s largest undeveloped potash resources, with relatively simple geological structures and mineralogy that make the deposit amendable to conventional, low cost, soft rock mining methods and ore beneficiation technology.

The project has moved beyond exploration and preliminary engineering into the feasibility and development stage.

Location Plan of the Zhilyanskoye, Chelkar and Satimola Projects in Kazakhstan