Israel Chemicals Group (ICG) has bought a 19.9 percent stake in Allana Potash, the Canadian company preparing to mine potash minerals in the Dallol depression of the Afar Regional Sate, in Ethiopia, according to The Reporter.

Nejib Aba Biya, co-founder of Allana Potash, told The Reporter that it has signed an agreement with the Israeli company ICG to jointly develop the Dallol potash mine. According to the agreement, ICG will acquire a 19.9 percent stake in Allana Potash, with Nejib confirming that ICG has already invested in a 17.7 percent stake, and will pay the remaining 2.2 percent by the end of March this year. ICG will invest US$ 85 million in the potash mine development project, Nejib revealed.

“For Allana it is not only securing an alternative financial source, it will enable Allana to use ICG’s reach and marketing experience in distributing various chemical products all over the world,” Nejib told The Reporter.

ICG plans to buy and sell 80 percent of the potash mined at the Dallol mine, while Allana plans to mine one million tons of potash every year valued at around US$ 430 million, according to The Reporter.

Last September, the Ethiopian Ministry of Mines granted a large scale mining license to Allana, enabling the company to mine potash in the Dallol depression. Allana says that it has discovered 3.2 billion tons of potash deposit, with a potential yield of US$ 1.3 billion.

The U.S. based Liberty Mutuals, owns a 15 percent stake in Allana Potash. The World Bank’s lending arm, IFC, has also a four percent stake.

Source: The Reporter