http://addisfortune.net/articles/africa-export-import-bank-consider-potash-proposal/

Africa Export-Import Bank Consider Potash Proposal

Although the discussions are still in their early stages, both parties are enthusiastic towards the project

Senior managers of Allana Potash, which controls 160SqKm of the Danakhil Depression, at Dallol, in Afar Regional State, are in negotiations with the Africa Export-Import Bank (Afreximbank) over a possible 600 million dollars in financing to develop 1.3 billion tonnes of potash resources.

Although it is too early to tell, the bank is optimistic about the potash development project, which is in its preliminary stage, said Denys Denya, the bank’s executive vice president of Finance, Administration and Banking Services, at the annual general shareholders meeting, held at United Nations Conference Centre, in Addis Abeba, on Wednesday, June 19, 2013. The bank is also celebrating its 20th anniversary.

“We are still at the preliminary stage, but we are positive about that,” Denya told the participants.

The bank was established in Abuja, Nigeria, in October, 1993, by African governments for the purpose of financing, promoting and expanding trade within and outside of African.

The bank, which is looking into financing the potash project in Ethiopia, has been active in the East Africa region, says Denya.

“The bank financed Kenyan Airways, with 1.9 billion dollars towards its expansion project, in 2011, and it is also looking into financing the coffee sector in Uganda and large sugar projects in Sudan,” he added

Allana secured financial support from two significant strategic investors: The IFC, a member of the World Bank Group and Liberty Metals and Mining, a member of the Liberty Mutual Group, after it presented its full feasibility report, in April 2012, to the Ministry of Mines (MoM).

It also received approval from its Environmental, Social, and Health Impact Assessment (ESHIA) from the Ethiopian Environmental Protection Authority (EPA), two months ago. This is the company’s final requisite in its application of a mining license.

The Ministry is currently evaluating the feasibility study of the company, according to Bacha Fuji, head of the Public Relations at the Ministry.

The Allana’s resource holds an average grade of 19.32pc potassium chloride, representing about 250 million tonnes, more than a 90pc increase over the June 2011 resource estimate