Liberty Metals & Mining Holdings, a subsidiary of Boston-based Liberty Mutual Insurance (LMM) has acquired 25% of shares in Yara Dallol for $51.25 million. Yara’s share of proceeds is $35.4 million. Following this transaction Yara will hold 51.8 percent of the shares, LMM 25 percent and XLR Capital Limited 23.2 percent in Yara Dallol.
Yara Dallol (the local arm of Yara International) is a project looking at extracting potash in the Danakil depression in North-Eastern Ethiopia. The feasibility study confirmed reserves and the technical viability for an annual production of 600,000 metric tonnes sulphate of potash (SOP) over a 23-year period.
Yara Dallol has additional resources to either expand annual production or increase the life of the project, as new market segments for SOP are developed. Yara Dallol aims to begin mining activities by the end of 2018.
The independent feasibility study estimated the capital expenditure of the project at $740 million and cash cost at $167 per metric tonne delivered (fob) Djibouti, among the lowest in the industry.
The Norwegian international fertilizer company had been looking for equity partners to support a $740 million potash mining project in Ethiopia, citing a feasibility study confirming significant potential for extraction of the potassium compound in the country’s northeastern area. Yara said the project is backed by the Ethiopian government, which has committed to providing electric power by building a 81-mile power line. The government will also build a new lowland transportation road to support mining operations, Yara said. The final investment decision for the project is planned for mid-2016.
Potash is a form of potassium used to make fertilizer and is also used in soap, glass and ceramics manufacturing.
The principal potash products are:
Potassium chloride (also referred to as muriate of potash or MOP) – containing 40-60% potash.
Potassium sulfate (or sulfate of potash or SOP) – containing 50% potash, potassium sulfate is used for plants that are particularly sensitive to chlorine, such as potatoes, fruits, vegetables and tobacco.
Sulfate of potash magnesia or potassium magnesium sulfate – for use in magnesium-deficient soils.
Source 1 2 3