A potash exploration work that was taking place in Afar State by Yara Dallol BV, a subsidiary of Yara International, is finalized after a total cost of U.S. $ 100 Million.

Yara, the international agricultural chemicals giant started drilling activities in 2010 and completed most of its drilling activities in 2012. The firm has been supplying fertilizers to Ethiopia.

Executive Director of Yara Dallol BV, Sanjay Singh Rathore, said his company has been prospecting for potash in the Afar Dallol depression. He furthered the company discovered substantial amount of potash in its concession.

Yara has already made definitive feasibility study which the company’s board must approve for the company to commence the construction of a potash mine in the Depression.

Commenting on this Singh said, “We are now in the process to complete the definitive feasibility study. If approved we will be producing 0.6 million tons of potash annually by applying solution mining”. He furthered the study is going to be the basis to decided whether to go with the project or not.

Upon approval of the board, Yara is expected to build a potash mine and a potash fertilizer factory. The total cost of the project, according to The Reporter, is estimated to be U.S. $ One Billion.

The Executive Director explained, the production start up is going to be 2 – 3 years after a decision has been made by the board.

Yara estimates the capacity of the Dallol project to be 1 – 1.5 Million Tons of potash per annum, with resources of more than 30 years mining. The mining company plans to supply 10 percent of the current global potash demand.

There are also other mining companies that are currently working in the Dallol depression. Allana Potash, a Canadian company, is on the process to build a potash mine in the Dallol depression. Allana secured a mining license a year ago from the Ethiopian Ministry of Mines.

A local company, Ethio-Potash Corporation, is also carrying out exploration work in the depression.

Source: The Reporter