AMN - ETHIOPIA: Circum granted Danakil licence

The application by Circum Minerals for a mining licence for the Danakil Potash Project in the Danakil region of northeast Ethiopia has been approved by the country’s Council of Ministers.

The agreement provides exclusive access over the 4.9 billion tonne NI 43-101 compliant potassium resource contained within the 365sqkm licence area for an initial period of 20 years and is renewable indefinitely for further 10 year periods, provided that financial viability continues to be demonstrated.

The licence allows the exploitation of potassium-bearing minerals which exist at relatively shallow depths within the area.

The minerals will be exploited by solution mining, the lowest risk mining method suitable to this region, and will be processed by crystallisation in solar ponds prior to final refining in a process plant. The combination of these techniques, which have already been proven by field trials in the licence area, will return operating costs projected to be among the lowest in the global potash industry for both potassium chloride (MOP) and potassium sulphate (SOP).

The award of the licence follows the submission of a comprehensive set of pre-requisite data which included a definitive feasibility study, a social and environmental impact assessment and associated management plans and detailed production and financial models.

Circum chairman and co-founder Stephen Dattels said: "We are delighted that the Ethiopian Government has approved the mining licence for this world-class project. This represents a significant milestone for both the company and the country.

“We now have a compelling investment case that supports the development of this project given our discovery and proving of its vast resource, our demonstration of its outstanding financial viability, the successful operation of our solution mine and subsequent production of potash products and most importantly, the strong level of government support we have been afforded which is demonstrated by the award of the mining licence."

www.circumminerals.com

News courtesy of International Mining