Name of the Project
Yara Dallol potash mine.
Location
The project is located in the Afar region of northern Ethiopia.
Client
Yara Dallol, a joint venture between Yara International (51.8%), Liberty Metals and Mining Holdings (25%) and XLR Capital (23.2%).
Project Description
Feasibility studies over the past few years have identified significant reserves of natural resources used to produce sulphur of potash (SoP) in the allocated exploration area.
The planned Yara Dallol mine will produce about 600 000 t/y of SoP, equivalent to about 10% of the global market. The products will be mined using solution mining, which means there will be no openpit at the site.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated.
Value
The total capital expenditure frame for the project has yet to be finalised, but significant efforts have been made to optimise expenditure, and the amount has been reduced from the previously estimated $740-million.
Duration
Not stated.
Latest Developments
The project is under development and remains attractive, but the outlook has been reduced, owing to higher estimated capital expenditure following completion of the technical testwork.
The SoP price forecasts have also been reduced in the short to medium term. A final investment decision is expected towards the end of 2018.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Yara Dallol head of external communications Kristin Nordal, tel +47 90 01 55 50 or email kristin.nordal@yara.com.