AMN - ETHIOPIA: Agreement reached on Yara Dallol

Norwegian company Yara International has signed a mining agreement with Ethiopian government authorities, making possible development of the Yara Dallol Potash Project. Yara Dallol is in the Afar region in Ethiopia's north.

The mining agreement was signed this week at a ceremony in Addis Ababa by Ethiopian Minister of the Ministry of Mines, Petroleum and Natural Gas Ato Motuma Mekasa, and Yara International president and CEO Svein Tore Holsether.

"We are glad to achieve this key milestone in the Dallol mining project. A mine in the Afar region would contribute significantly to economic development locally and nationally. We recognise and appreciate the efforts made by the Ethiopian government in supporting the project, both by providing necessary infrastructure and through making the mining agreement possible," said Svein Tore Holsether.

During feasibility studies carried out in recent years, significant reserves of natural resources used for the production of Sulphur of Potash (SOP) have been identified in the allocated exploration area. SOP is a premium fertiliser product especially beneficial for fruit, vegetable and coffee crops.

The planned Yara Dallol mine will have a production capacity of approximately 600,000 tonnes of SOP per year, equivalent to approximately 10% of the global market. The products will be mined using solution mining, meaning there will be no open pit at the site.

Yara Dallol is 51.8% owned by Yara International with the other owners being Liberty Metals and Mining Holdings with 25% and XLR Capital with 23.2%. A final investment decision is expected towards the end of 2018.

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 US$740 million.

Yara's knowledge, products and solutions grow farmers', distributors' and industrial customers' businesses profitably and responsibly, while protecting the earth's resources, food and environment.

Yara's fertilisers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Its industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods.

Founded in 1905 to solve emerging famine in Europe, today Yara has a worldwide presence, with close to 15,000 employees and sales to about 160 countries.

www.yara.com