ICL to partner with Allana in Ethiopian potash mine

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Israel Chemicals (ICL) said on Thursday it would partner with Canada's Allana Potash to develop a potash mine in Ethiopia in a deal which includes ICL taking a stake in Allana.

The feasibility study for the Danakhil project in the Dallol region of northeast Ethiopia indicates it will produce about one million tonnes of potash annually within five years.

The alliance comprises an investment by ICL of $23 million in units of Allana shares and warrants at 43 cents per unit.

Following its initial investment, ICL will hold 16 percent of Allana's regular shares and it may increase its holding in Allana to 37 percent upon its exercise of warrants that are part of the units.

Proceeds of the investment will be used by Allana to develop the Danakhil mine project.

The alliance also includes an agreement in which ICL, the world's sixth-largest potash producer, will purchase and market the output of the mine.

It will provide technical assistance to Allana as well.

The partnership is in line with ICL's strategy to broaden its sources of raw materials while reducing its production costs and focusing on growth-generating emerging markets which it believes will drive significant growth over the next decade.

ICL, which has potash mines in Israel, Spain and Britain, sold over 5 million tonnes of potash in 2013.

"The Danakhil mine will provide potash for Ethiopia and Africa, and, combined with ICL's agronomics fertilisation know-how, will enable local farmers to increase agricultural output and food for the region," ICL Chief Executive Stefan Borgas said.

"The location of the Danakhil mine will provide us with fast and easy access to the Indian Ocean, which will enable us to even better serve our customers in India and South East Asia."

ICL, which is controlled by Israel Corp, said developing sources of raw materials worldwide was an important objective, especially in light of its need to ensure additional alternatives when the time comes to extend its franchise to produce potash from the Dead Sea, which expires in 2030.

It also noted "the uncertainty regarding the business and regulatory environment in Israel."

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left


Meridian’s conveyors deliver seed with unmatched versatility. Meridian’s transport conveyors are manufactured with heavy-duty, fully enclosed construction. Meridian’s cross cleated ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form