More DD ... just for Twevor!!! Meeting with Farhad
I tried to decipher the notes I took during the meeting and I was about 90% successful. Info below is provided without any guarantee of accuracy and/or completeness.
Farhad is a fast talker and on top he is still in black out period, as he explicitly mentioned.
(Therefore, I might come with more later.)
Here it is:
1.0 Technical work
1.1 water drilling and testing will be completed early January 15
1.2 second cavern is being drilled all the way to Kainitite member. (Only for SOP PEA)
1.3 Optimization of MOP. ICL suggested a change in crystal harvesting process (not to let the pond evaporate completely and harvest the crystals using a floating harvester. This prevents damage to the pond liner).
1.4 The evaporation at Dallol is much faster than ICL is used to at Dead Sea, due to high concentration on KCL in the brine (Dead sea water has only 1% of KCL in it and ICL needs about 300km2 of ponds there). All optimization work will be completed in January.
1.5 SOP project size is envisioned to be 1-2mt/y. (!) Direct SOP manufacturing process from Kainitite is being tested. Results in 1-2 months
1.6 Some additional logistic and marketing study needs to be completed on MOP to satisfy the lenders. (sounded like a small work, no specifics given)
2.0 Financing
2.1 One alternative considered now is a Chinese construction company building the mine with financing from Chinese Export bank. This alternative would include the equity portion supplied by this construction company (taking a position in Allana, presumably MOP part)
2.2 ICL taking over (buy-out) of MOP project no particulars given. There is a slight possibility ICL be interested in SOP as well, but they would have to act fast.
2.3 ICL staying on as investor only and Allana would remain a stand alone Co. The financing mentioned by other participants would be applicable to this alternative
General notes and comments:
The current liability (14M) from the last FS, only 3M is payable now and the rest when the ICL deal is fully consummated (either buy out or investment of remaining 50M)
There is interest from London to supply subordinated debt to bring the debt financing to over 550M mark
All dealing and wheeling will be completed one way or another by March 2015
Yara will not be involved in SOP or MOP, as it is not a mining company, (Yara actually made overtures to sell their concession to Allana)
This somehow contradicts the previous info (like below)
Call for transport services
Posted on: Jan 15, 2013
Bid Closing Date & Time: Jan 19, 2013, 05:00PM
Bid opening Date: Jan 19, 2013, 05:00PM
Published on: Reporter (Amharic)
Date of publication: Jan 13, 2013
Category: transit & transport services
Company/Organization:
Status: Open | Time Left: 4 days | Views: 39
Detail Tender Information
CALL FOR QUOTATIONS Ethiopotash BV (YARA International, Ethiopian Branch) is a company involved in exploration and mining development of Potash at Dallol, the Afar region. Weare looking into establishing a long term relation with a transport company and therefore would like to invite interested parties to participate in the quotations for transport and port handling services of different items, Destination of Items:- • Djibouti to Dallol • Addis Ababa to Dallol Capacity of vehicles:- • High-Bed truck for 1×40’ container or 2×20’ container • High_Bed truck for 1×20’ container, • Low-Bed Truck for machinery and equipment transport. • Trucks of loading capacity 3 ton or 5 tons,Estimated volume of transport: – 10 to 30 trips per month Note:- • For further conditions and detailed scope of work please use the following Email addresses blen.getachew@yara.com and copy to habtom.ethiopotash@gmail.com last day of submission will be 7 working days after the announcement