Ethio-Potash has requested 70 MW of dedicated power for its extraction project in the Danakil Depression of Ethiopia. The 
company needs the power supply to be available by 2014 as it launches extraction efforts after completing its feasibility study in the middle of this year.
The company has been in the process of negotiations with the Ministry of Water and Energy and the Ministry of Mines according to Jorgen Ole Haslestad, Chief Executive of Yara International which owns a 51% stake of the company.
Ethio-Potash can potentially extract 1.5 tons of potash a year according to the 2012 first quarter report released by Yara. The project costs at the Danakil Depression project can extend to as much of 2 billion birr said Hoslestad.
The Ethiopian Electric Power Corporation is in the process of finalizing a power supply feasibility study in response to this request it was said. EEPCO will anticipate the power demands of the area which is a target for mineral exploration and extraction in establishing infrastructure said Mekuria Lemma, Chief Officer for Corporate Planning with the corporation.It has been decided that the best way to supply power to the area is from Mekelle in Tigray Regional State according to Mekuria. The corporation expects to cover the budget for the project as it is not covered under the electricity expansion project he noted.
Potash has the potential to replace coffee as a primary source of foreign currency said Wondimu stressing the commitment of the power corporation to meet the demands for the project.
Source: Addis Fortune
