By Dominic Chopping
Norwegian fertilizer producer Yara ASA (YAR.OS) said Friday that
an independent feasibility study has confirmed significant
potential to extract potash in the Danakil depression in
northeastern Ethiopia.
The study identified an annual production of 600,000 metric tons
sulfate of potash (SOP) over 23 years from reserves at Yara's
Danakil concession.
The company, which aims to begin mining activities in the third
quarter of 2018, is now seeking equity partners to develop the
project.
The product will be trucked 790km to Tadjoura, Djibouti, where
the project includes a product storage and handling terminal at the
new port currently under construction by the Djibouti Port
Authority.
Capital expenditure of the project is estimated at $740 million,
while operating expenditure is expected to amount to $167/metric
ton.
Yara's Danakil mining project has received the backing of the
Ethiopian government, which has committed to providing electric
power by building a 130km long power line. The government will also
construct a new lowland transportation road to support mining
operations.
Write to Dominic Chopping at dominic.chopping@dowjones.com
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