Yara Dallol to start mining by 2018 in Dallol north eastern Ethiopia
Ethiopian News, Tigrai Online, December 1, 2015
Yara international says it will start mining activities by the end of 2018 in Dallol North Eastern Ethiopia. Yara Based in Oslo, Norway Yara is one of the largest fertilizer manufacturers in the world.
Yara’s feasibility and technical studies confirmed Yara Dallol can produce 600,000 metric tonnes of sulphate of potash (SOP) annually for over 23 years.
Recently Liberty Metals and Mining Holdngs a subsidiary of a Boston based Liberty Mutual Insurance bought 25 percent of shares in Yara Dallol for $51.25 million.
Once production starts the final product will be trucked to the newly constructed storage and handling terminals in Tadjoura, Djibouti.
Yara indicated there is more in Dallol if the need araises, “Yara Dallol has additional resources to either expand annual production or increase the life of the project, as new market segments for SOP are developed.”
The company has been looking for equity partners to develop the project, now that issue is resolved Yara Dallol can concentrate on production aspects of the project. The Dankil Depression in Ethiopia has one of the highest deposits of potash in the region.
Capital expenditure of the project is estimated at USD 740 million dollars. The production of potash will bring much needed hard currency to the Ethiopian public coffers and create thousands of direct and indirect jobs for local Ethiopians.
Potash is a key component on the production of agricultural fertilizer and other industrial products and Ethiopia is blessed with plenty of it.