Israeli firm acquires potash mine in Ethiopia

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Saturday, July 4  2015 at  18:25

 By KENNEDY SENELWA, TEA Special Correspondent

IN SUMMARY

  • Tel Aviv-based Israel Chemicals Ltd (ICL) has completed acquisition of the Allana Potash Corporation, which is developing Ethiopia’s Danakhil mine.
  • Based on a feasibility study conducted by Allana in February 2013, the Danakhil project is estimated to have the potential of yielding one million tonnes of muriate of potash per annum for 25 years.

Tel Aviv-based Israel Chemicals Ltd (ICL) has completed acquisition of the Allana Potash Corporation, which is developing Ethiopia’s Danakhil mine. The mine has potash, an ingredient used in manufacturing potassium fertilisers; it is in high demand in Asia.

ICL paid $137 million for an 83.78 per cent stake of the Toronto Stock Exchange-listed company. In 2014, ICL bought 16.22 per cent shares of Allana Potash for $25 million.

The Danakhil mine is located in the Afar region of northeastern Ethiopia.

The deal was sealed following approval by Allana’s security holders and Ontario’s Supreme Court of Justice. ICL’s chief executive officer Stefan Borgas said the acquisition of Allana is in line with the company’s strategy to broaden sources of raw materials globally, and focus on high-growth emerging markets.

“Allana gives us a major mining concession in Africa as well as a talented on-the-ground team with whom we intend to pursue our development of potash resources in Ethiopia,” Mr Borgas said.

Based on a feasibility study conducted by Allana in February 2013, the Danakhil project is estimated to have the potential of yielding one million tonnes of muriate of potash per annum for 25 years.

“We are encouraged by the initial support of our activities by the Ethiopian government, which we trust will be translated into the assistance that we require to fully develop Ethiopia’s natural resources,” said Mr Borgas.

ICL has sponsored an awareness programme dubbed “Potash for Growth” with Ethiopia’s Ministry of Agriculture and the Agriculture Transformation Agency. The programme will involve the creation of hundreds of demonstration plots in Ethiopia.

http://www.theeastafrican.co.ke/business/Israeli-firm-acquires-potash-mine-in-Ethiopia–/-/2560/2775156/-/305ha5/-/index.html?

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