By: Liezel Hill

19th February 2010

(miningweekly.com) – TSX-listed MagIndustries has received final approval from the Republic of Congo (ROC) of the environmental and social impact assessment study for its Mengo potash project, the company announced on Friday.

Sustainable Development, Forest Economy and Environment Minister Henri Djombo informed the company that it had been given approval for the project. The authorisation is valid for three years, and will be renewable at the time that the project starts operations.

"Receiving environmental and social approval from the government of the Republic of Congo represents another major step in the company's development and construction plans,” CEO Bill Burton commented.

“Our positive relationship with the ROC, the improving global investment environment and increasing potash demand and pricing are all key factors as we work towards the goal of full construction start-up later this year.”

In January, MagIndustries signed a project development framework with China National Complete Plant Import & Export Company (Complant), for the financing and development of the Mengo project.

Construction could begin on the 1,2-million tons a year operation by November this year, Burton said at the time.

Under the framework agreement, Complant will commit to arrange a loan of up to $1,2-billion to fully finance the construction of the Mengo operation, and will also be appointed engineering, procurement and construction contractor for the project.

The framework agreement also includes an option for Complant to buy a 50,1% interest in MagIndustries' subsidiary that holds the Canadian firm's 90% stake in the project.

Shares in MagIndustries rose 4,71% on Friday, to 44,5 Canadian cents by 15:45 in Toronto.