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Danakil potash project, Ethiopia

8th November 2013

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Danakil potash project, Ethiopia.

Client
Allana Potash.

Project Description
Total muriate of potash (MoP) product from proven and probable sylvinite reserves at the Danakil project is estimated at 23.7-million tonnes.

A feasibility study completed on the Danakil project envisages commercial operations that produce one-million tonnes a year of a standard-grade MoP product over an initial estimated operating life of about 25 years from sylvinite reserves.

Production will be through solution mining, solar evaporation and flotation.

Solar evaporation of the saturated brine solution is possible at the project, owing to the year-round daily temperatures averaging 34°C, with very little rainfall.

Value
Capital expenditure is estimated at $642-million, including production, port and logistics and contingency.

Duration
One-million tonnes a year of MoP from sylvinite, with first product in 2015, and bulk shipments ramping up from 2016 to a full one-million-tonnes-a-year production rate by the end of 2017.

Latest Developments
The Ethiopian Ministry of Mines, after receiving approval of the Ethiopian Council of Ministers, has issued the mining licence for the Danakil project.

The mining licence was issued after a detailed review by the Ministry of Mines and other Ethiopian government departments of the project’s feasibility study and environmental, social and health impacts assessment, which were approved in May by the Ethiopian Environmental Protection Authority and the Ministry of Mines.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Allana Potash senior VP: corporate development Richard Kelertas, tel +1 514 717 6256 or
email rkelertas@allanapotash.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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