Yara International ASA will sign a mining agreement Nov. 7 with the Ethiopian authorities, making possible the future development of the Yara Dallol potash mine. Yara Dallol is a mining project located in the Afar region in the northern part of Ethiopia. The planned mine will have a production capacity of approximately 600,000 mt/y of sulfate of potash (SOP) equivalent to approximately ten percent of the global market. The products will be mined using solution mining.
Yara Dallol is a 51.8 percent Yara owned company. The other owners are Liberty Metals and Mining Holdings (25 percent) and XLR Capital (23.2 percent). A final investment decision is expected towards the end of 2018. The total capital expenditure frame for the project has yet to be finalized, but significant efforts have been made to optimize expenditure, and the amount has been reduced from the previously estimated US$740 million.