Company Overview
Congo Potash Company (CPC) is a new entrant to the Potash industry focused on potentially world class projects in the Republic of Congo. The company was founded in 2007, and is registered in Quebec, Canada. The company intends to seek a listing on a suitable stock market by 2009, and is completing pre IPO financing to commence work programmes on an extensive lease holding in the Republic of Congo.
Why Potash and why the Republic of Congo?
The economics of global food production are transforming rapidly as the forces of growing global populations, rising living standards, urbanization and biofuels cultivation converge to create unprecedented demand for fertilizer to raise crop yields and transform the economics of crop production. The potash industry has high barriers to entry, and successful producers typically enjoy superior returns through the outstanding market fundamentals for a vital fertilizer input in relatively short supply.
The Republic of Congo is set to be the newest entrant to this industry at a time of soaring prices and unprecedented demand. The advantages of the Republic of Congo over more established provinces of potash production, lie in its unrivalled logistics advantages, with all known potash mineralization within 100 kilometres of an established deep water port at Point Noire. Much of the world’s established potash resources lie in regions far from deep water ports, with lengthy and congested rail lines to ports. The Republic of Congo enjoys substantial freight advantages to the high growth Brazilian markets over other more established regions of supply. Outstanding infrastructure of roads, power, and ports adds to the potential competitive advantages of this region.
With the support of the government in the Republic of Congo for a healthy market comprising at least two producers, this region is set, over the next few years, to establish itself as a highly competitive force in the potash industry, with lower barriers to entry than those faced by new entrants in more established producing regions.
