RE: Water is a valuable commodity I wonder if the local Ethiopian government let alone the population will like their water used for separating potash brime over being drank? After all it is a very arid region...
Re:
https://www.wealthwire.com/news/global/3601
Allana Potash and Ethiopian Potash are looking for sylvinite. However, their sylvinite layers sit on top of carnallite, so solution mining in these deposits brings along the carnallite, too. One cannot selectively mine for the sylvinite in these seams. Producers have to liberate the potassium chloride from the brine mixture.
Furthermore, Ethiopia-based deposits lack infrastructure support. They sit in a desert far from roads and rail lines, and water is difficult to come by. Allana Potash is drilling wells to find water. Juniors in Saskatchewan and the Congo are not exposed to the same lack-of-water risk.
Allana Potash stands out from the pack in Ethiopia; the company has the better position. Recently, Ethiopian Potash has tried to restructure and reorganize itself. In addition, BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) has announced that it is not conducting any more exploration at its Ethiopian potash project. This exit brings a bit of uncertainty to the potash zone in eastern Africa.
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