MagIndustries Corp. reported that it has entered into a port facility design contract to further the development of its Mengo potash project in the Republic of Congo. The contract is with China Shipbuilding NDRI Engineering Co.

Ltd. and calls for the design of all necessary facilities for the operation of a potash export terminal in the New Port area of Point-Noire, ROC. This contract is for the full design services for an export facility suited to load potash bulk carriers including a jetty and trestle, a breakwater, a 150,000-tonne storage facility, transfer stations, ancillary facilities and transportation corridors. The Mengo Project is a proposed 1.2 million tonnes per year potash mine and processing plant to be constructed in two modules of 600,000 tonnes per year each.

The Mengo Project is located near the village of Mengo, 25 kilometers east of the Atlantic port city of Pointe-Noire, ROC. The company holds a mining license for a 136 km area. The total price of the contract is approximately $6.2 million subject to adjustment mechanisms for the US dollar/Chinese Yuan exchange rate.