Ethiopia’s Danakil Depression Holds ‘Significant’ Potash Potential

Yara International SA (OTCMKTS:YARIY) announced that a feasibility study conducted on its behalf shows that there is “significant potential” to extract potash from Ethiopia’s Danakil depression.

As quoted in the press release:

The independent study identified an annual production of 600,000 metric tons sulfate of potash (SOP) over 23 years from reserves (Kainite, Carnallite and Sylvinite) at Yara’s Danakil concession. The company, which aims to begin mining activities in 3Q, 2018, is now seeking equity partners to develop the project.

The reserves will be mined using solution mining technology. The brine produced at the mining sites will be evaporated utilizing high solar radiation. The harvested salts will be processed and re-crystalized to SOP. Both standard and compacted SOP will be produced.

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 USD 740 million, while operating expenditure is expected to amount to USD 167/metric ton FOB Djibouti.

Click here to read the full Yara International SA (OTCMKTS:YARIY) press release.