Yara Dallol BV, a subsidiary of Yara International proposed to the Ministry of Mines (MoI) two weeks ago for a large-scale mining license for potash mineral deposit in the Dallol Depression, Afar Regional State, according to The Reporter.

Yara has completed the exploration project with the cost of USD 100 million. It has explored an extensive potash deposit in its concession, Dallol depression, thus proposed to produce 0.6 million tons of potash a year.

Tolossa Shagi, Minister of Mines, told The Reporter, “We are evaluating the proposal. Once we finalize the evaluation we will grant them a large-scale mining license.”

Following the evaluation, MOI will submit the draft mining license to the Council of Ministers for approval. After approval, MoI and Yara will sign the mining agreement.

Yara begun drilling activity in the Dallol depression in 2010 and it was finalized in 2012.

Yara International is an agricultural chemicals giant which has been supplying fertilizers to Ethiopia. It has plans to build a potash mine in the Dallol depression and construct a potash fertilizer company.

Yara, Circum Resources and Allana Potash are the three international mining companies engaged in potash exploration and development projects in the Dallol depression.

Allana Potash and the UK Company, Circum resources had proven a huge amount of potash mineral deposits in the Dallol Depression.

Potash is the major input for the production of fertilizers. Ethiopia spends USD 150 million on fertilizer imports.

Source: The Reporter