The Ethiopian Minerals Development Enterprise S.C. has shelved it construction material plant project proposed in the Afar Regional State due to lack of finance.

The Ethiopian Privatization and Public Enterprises Agency (PPESA) passed its decision to suspend the project as the enterprise is planning to build a tantalum manufacturing plant at the Kenticha tantalum mine and it would be difficult to undergo the two projects together.

The cost of the planned construction materials plat is estimated at 113 million Ethiopian birr.

Experts drawn from Ethiopian Geological Survey, Addis Ababa Housing Agency, Minerals Development Enterprise S.C. and the Afar Salt Producers Association has already undertaken a pre-feasibility study on the project.

Ethiopian Minerals Development Enterprise S.C. has been planning to construct the factory near the Afdera Lake, a major salt production site.

The Enterprise was planing to produce magnesium chloride from the bi-product of salt  which is used to produce magnesium boards. Magnesium board is used to make partitions in houses and buildings.

Currently, Ethiopia imports magnesium chloride from abroad. Yibel Magnesium Board and Living Steel Construction are known suppliers of magnesium boards in Ethiopia.

Source: The Reporter