Israel Chemicals Ltd. has halted its potash project in Ethiopia, according to a report Aug. 15 in the Marker economic daily. The report said that ICL had taken its decision due to delays by the Ethiopian government on giving concrete assurances regarding the operation of the planned mine. ICL would not comment on the report.
The Marker estimated ICL has invested $180 million so far in the project. This includes the $135 million paid for Allana Potash which was granted the concession to mine potash in Ethiopia. The report said that the Ethiopian government had not given ICL response regarding tax issues, the price of electricity from the state-owned utility and water supplies.
In late December, ICL said it was still evaluating the technical and economic feasibility of the Ethiopian potash project and would take a decision in mid-2016. The paper reported that ICL had fired 120 people working on the project and that CEO Stefan Borgas instructed that all investments in the Ethiopian project be halted until the Ethiopian government approves the regulatory framework for the project.
An Israeli analyst recently told Green Markets that the Ethiopian project was based on a potash price of $430/mt, which is almost double current levels.