Santiago—Sociedad Quimica y Minera de Chile SA (SQM) has announced that it will invest approximately US$20 million in Elemental Minerals Ltd. (ELM), an Australian-based company with potash deposits in the Republic of Congo. In return, SQM will receive 17 percent of the company and a right of first refusal for approximately 20 percent of the total potash production of ELM. SQM confirmed in April that it had been evaluating a project in Congo (GM April 22, p. 12). The State General Reserve Fund of Oman and Summit Private Equity will also subscribe US$20 million and US$10 million, respectively. SQM noted that preliminary studies suggest ELM has high-grade deposits with potentially low-cost production. It said the deposits are within 18-35 kilometers of the port, which offers convenient access to Brazil. It said initial capacity could be around 2 million mt/y growing to 4 million mt/y. It said a definitive feasibility study could be delivered within two years, fully financed with the US$50 million capital increase.
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