The Norwegian chemical and mining company, Yara International PLC, has acquired exploration and mining licenses for 20 years. The company is going to undertake exploration and mining activities in Afar State and its licenses have the option of being extended for another 10 years depending on the demand.

The agreement was signed between Ethiopia and Yara represented by Motuma Mekassa, Minister of Mining, Petroleum & Natural Gases and Svein Tore Holsether, President and CEO. The agreement was signed at the Grand Palace, in a ceremony where Mulatu Teshome (PhD), president of Ethiopia, and Crown Prince of Norway, Haakon, were present.

Commenting on the development, Tewodros Gebreegziabher, state minister for Mining, Petroleum & Natural Gases, said “The company has been studying the mining area for 10 years”. It would start operations next year, he added.

Yara has an investment capital of 731 million USD and intends to produce 110 tons of potash every year. It also aims to earn 110 million USD from exporting its product.

The construction of the processing plant will commence next year while operation is scheduled foranother 3 years.

Source: Fortune