Danakil potash project, Ethiopia
Name and Location
Danakil potash project, Ethiopia.
Client
Yara International.
Project Description
A feasibility study on the Danakil project has confirmed significant potential to extract potash in the Danakil depression, in north-eastern Ethiopia.
The independent study envisages 600 000 t/y of sulphate of potash (SoP) over 23 years from kainite, carnallite and sylvinite reserves at the concession.
The reserves will be mined using solution mining technology.
The brine produced at the mining sites will be evaporated using high solar radiation.
The harvested salts will be processed and recrystalised to SoP. Standard and compacted SoP will be produced.
The product will be trucked 790 km to Tadjoura, Djibouti, where the Djibouti Port Authority is building a product-storage and -handling terminal at the new port.
Net Present Value/Internal Rate of Return
Not stated.
Value
Capital expenditure for the project is estimated at $740-million.
Duration
The company aims to begin mining activities in the third quarter of 2018.
Latest Developments
Yara is seeking equity partners to develop the project.
The project has received the support of the Ethiopian government, which has committed to providing electric power by building a 130-km-long power line.
The government will also build a new low-land transportation road to support mining operations. Sustainable water availability has been confirmed through a water exploration campaign, while an environmental- and social-impact assessment study has confirmed that future activities will comply with Ethiopian environmental legislation, and international guidelines and standards.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Yara media relations, Esben Tuman, tel +47 24 15 70 26 or email esben.tuman@yara.com
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