Allana Potash Afar’s potash mine concession, which is found in Afar State, was taken over by Ethiopia’s government following tax claims by the Ethiopian Revenue and Customs Authority (ERCA).

Allana Potash halted its operation and evacuated its expat staffs when the controversy started. It has relinquished the concession and laid-off every local staff. Ever since then, the potash development project was abandoned.

It was in 2015 that Israel Chemicals (ICL), the now parent company of Allana Potash, bought all the shares of Allana Potash. This made ICL owner of the potash concession. Since then ICL has asked the Ministry of Mines, Petroleum and Natural Gas (MoMPG) to transfer the mining license of Allana Potash. However, the Ministry did not transfer the concession at the company failed to present a tax clearance from ERCA.

According to The Reporter, MoMPG repeatedly tried to invite executives of Allana Potash Afar to discuss the matter for no avail. It was after waiting for half a year that ERCA and MoMPG took over the properties and the concession.

Allana’s studies show there is a potash mineral deposit on the 300 square meters of land with a total of 3.2 billion tons of potash deposit. Allana was planning to develop the mine at an outlay of 700 million USD. Nevertheless, the company failed to raise the required capital as the price for potash nosedived in the international market.

Source: The Reporter