The Republic of Congo is finding a way to stop wasting a valuable resource and MagIndustries (MAA-V) is gaining access to much needed natural gas in the country.
The win, win scenario was put to the public after government officials and industry leaders in the country, including MagIndustries, met in Milan, Italy to find a way to stop the wasteful flaring of natural gas and instead channel the resource into energy production.
MagIndustries needs the energy for its phase one and phase two potash mining and processing operations as well as for a proposed magnesium smelting operation, and is working out a deal with largest oil and gas company operating in the country to get it.
After the meeting the government officially endorsed MagIndustries potash project, heralding it as a way to help the world cope with the rising food crisis.
“With (potash production), Congo will contribute to the struggle for universal food security,” the statement from the government reads. “The government of Congo supports without reserve the important (MagIndustries) project which carries the hopes of diverse sectors of Congolese society. To that end, the Government of Congo will spare no effort toward the harmonious and happy realization of this project.”
In Toronto on July 16 Toronto-based MagIndustries shares were up 9% or 24 to $2.80 on roughly 1.78 million shares traded. The company has roughly 198 million shares outstanding and its share price has moved between $1.25 and $3.72 over the last 52 weeks.
The government said natural gas would be used to both electrify the country and to support more industrial development. Eni, the oil and natural gas company with a prominent position in the country, confirmed there is enough natural gas to fuel a proposed electrical generating plant that could, in turn, supply MagIndustries’ requirements.
Eni also said the gas would be made available to MagIndustries at a price and under terms to be determined by the government.
Eni and MagIndustries are working on a Memorandum of Understanding which, they say, will be followed by a gas supply agreement.
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