Israel's ICL Connects with 1 Million-Ton Allana Ethiopian Potash Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Israeli fertilizer production company ICL (OTC:ISCHY) (Tel Aviv) will provide technical assistance to Allana Potash Afar plc (APA) in developing and operating a potash project in the Danakil area of Ethiopia's Afar region.

ICL has acquired a 16% stake in APA and has invested $25 million in APA shares. "Following its initial investment, ICL will hold 16% of APA's regular shares, and it may go up to 84% in the future," said Nissim Adar, ICL's general manager, who signed the agreement with Nejib Ababiya, senior vice president of APA.

In October 2013, APA was granted a license to start potash production in Afar. The Ethiopian company, a subsidiary of Allana Potash Corporation (Toronto, Ontario), ran a five- year exploration process for the Dalliol-Potash project and secured a 20-year license from Ethiopia's Ministry of Mines for production on 310,176 square kilometers in Dalliol.

ICL, the world's sixth-largest potash producer, has agreed to purchase and market the output of the mine. APA estimates that the mine will produce 1 million tons of potash within five years.

The Ethiopian partnership fits ICL's strategy of broadening its sources of raw materials, while focusing on what it calls growth-generating emerging markets, Adar said: "We believe that these markets will drive significant growth over the coming years."

The potash project is now launching programs focused on water supply design; solution mining; evaporation pond operations, procedures and output; production transportation logistics; and product storage strategy refinements.

For related information, see October 21, 2011, article - Ethiopia's Potash Boom Rolls with $6.5 Billion from Five Companies.

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