The share price of ITD jumped as much as 18% at the opening bell on Tuesday after the announcement of receiving a 25-year mining license.
Italian-Thai Development Public Company Limited (SET: ITD) announced earlier this morning that Asia Pacific Potash Corporation Limited, a subsidiary of the company with a 90% share, has been granted a Potash Mining License by the Udon Thani Provincial Industrial Office.
The Udon South Potash Mining Project is a project for which the Ministry of Industry, with the approval of the Cabinet, is inviting companies to apply for the rights to explore and produce potash ore.
The Cabinet of Ministers passed a resolution on June 28, 2022, for a Mining License for Type 3 Mining (Underground Mining) of Potash Ore to APPC for 4 plots of the Udon South Potash Project.
The Udon South Potash Project has an estimated total mineral reserve of 85,820,781 metric tons to sell domestically about 700,000 tonnes per year, with the surplus 1.4 million tonnes permitted to export per year.
The Potash Mining License granting period is 25 years from the issued date of September 23, 2022; however, it requested an extension of an additional 5 years under the terms of the Minerals Act, B.E. 2560.
The latest announced price of potash by the Department of Primary Industries and Mines, as of October 10, 2022, is 34,250 baht per metric ton. At present, Thailand imports all its main fertilizers.
After a gain as much as 18.13% at the open on Tuesday after the announcement, the share price of ITD slowed down to +6.74% as the morning session progressed.