Water water ...
18 Oct 2012 - 00:00 by OOSKAnews Correspondent
ADDIS ABABA, ETHIOPIA — Toronto-based Allana Potash Corp. announced on October 16 that it is moving forward with the feasibility and environmental impact assessments for its planned potash extraction project in Ethiopia.
Allana President and CEO Farhad Abasov said the company was “pleased with the results of the final exploration drill holes” at its Dallol potash project. “The most recent drill results continue to show continuity of the potash mineralization…,” he said. “We are also very pleased with the ongoing efforts to secure construction financing and long-term supply agreements for our future production. Allana is now advancing talks with large buyers of potash as it works toward finalizing the structure for construction financing."
The announcement comes just a week after Ethiopotash, another leading potash miner managed by Norway’s Yara International, launched negotiations with the government for a license to abstract unspecified volumes of water for use in its potash refining plant, which will be constructed at Danakil Depression in the first half of 2013.
Minister for Water and Energy Wondimu Takele on October 9 confirmed government discussions with Ethiopotash over water supply, but said the government wants the mining company to use “groundwater that is available in the area” instead of the scarce surface water in the project area.
Ethiopotash, owned partly by Danish investors, plans to extract an estimated 1.5 million tons of potash annually from Danakil Depression starting in June 2013.
The Danakil Depression in Ethiopia has limited supplies of groundwater because of the poor permeability of the crystalline rocks and variable water-table depths.
A number of foreign potash mining firms -- Nova Potash Plc and Sainik Coal Mining Plc, as well as Allana -- are already exploring for the mineral and raising demand for both water and electricity.
The country’s power utility, Ethiopian Electric Power Cooperation, is finalizing a power supply feasibility study for the potash-rich area.
Ethiopotash had asked the power supplier for the study before the planned installation of 70 megawatts of power for its planned projects.
Several dams are either under way or planned in Ethiopia, as the country implements a power generation program targeting an additional 6,000 megawatts from hydropower projects on the Nile River.
Allana Potash Corp.CanadaDallolDanakilEthiopiaEthiopotashFarhad AbasovMiningNova Potash PlcPotashSainik Coal Mining PlcTorontoYara International