Yara International signed a 731 million US dollars mining agreement to start large scale potash production in Ethiopia’s Afar regional state.
The agreement will last for 20 years and can be renewed for additional 10 years bas on demands, it was noted.
The agreement comprises both production of potash and construction of a fertilizer factory and the agreement was signed by Ethiopian Minister of Mines, Petroleum and Natural Gas, Motuma Mekasa, and Yara International President and CEO, Svein Tore Holsether.
The government of Ethiopia has been maximizing efforts to increase agricultural productivity as the sector has a considerable contribution for our economy, said Prime Minister Hailemariam during his discussion with Holsether.
The agreement signed to begin potash production in Ethiopia is a good opportunity for both the company and Ethiopian farmers, the Premier said.
President and Chief Excutive Officer (CEO) of Yara International Svein Tore Holsether for his part appreciated the government of Ethiopia for making the mining agreement possible.
The Company is ready to enter into next phase and commence potash production next year, he said.