With the Crown Prince presence, Yara signed on Tuesday a major mining agreement with Ethiopia. At the same time, Norad entered into an agreement with the Development Fund for Vocational Education to create jobs for young people in the mining region. Yara, German GIZ and an Ethiopian institution are partners in the project.
At the same time, this creates a job for youth in Ethiopia. Strategic partnership with Yara, Tweets the Development Fund’s Kari H. Partapuoli from Addis Ababa.
The planned Yara Dallol is a mining project located in the Afar region in the northern part of Ethiopia.
“We are pleased to have achieved this important milestone in the Dallol mining project. A mine in the Afar region will contribute significantly to economic development both locally and nationally”, says CEO Svein Tore Holsether, who is in Ethiopia to sign the agreement with Ethiopian authorities.
Development Fund Kari H. Partapuoli and Yara Group CEO Svein Tore Holsether. Photo: Development Fund
Yara’s preliminary studies that have been done in recent years have shown significant reserves of natural resources for use in the production of potassium sulfate (SOP) in the assigned search area. SOP is a fertilizer product that is particularly suitable for fruit, vegetables and coffee crops, according to a press release from the company.
The planned Yara Dallol mine will have an annual production capacity of approximately 600,000 tons of SOP, equivalent to approximately 10 percent of the global market. Yara Dallol is a 51.8 per cent Yara International owned company.
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 USD 740 million to around 6 billion Norwegian kroner
Norad and the Development Fund sign the agreement.
The contract between Ethiopia and Yara was signed during a ceremony, with the Crown Prince presence in Addis Ababa. The Ethiopian Minister for Mining, Petroleum and Natural Gas, Ato Motuma Mekasa signed on behalf of the government.
“The participating Norwegian business delegation shows the growing interest in Norway to invest in Ethiopia. The visit will give Norwegian companies an opportunity to share experiences and link contacts with Ethiopian business, and perhaps get new business partners in one of the most promising African markets, Crown Princess Mette-Marit said in his speech.
Following King Olavs footsteps
The royal family in Norway has had a close relationship with Ethiopia for several generations. Crown Prince Haakon said that King Olav visited Ethiopia 51 years ago.
“I am very pleased to be able to retrace some of his footsteps follow and learn more about how our mutual relationship has evolved over the past few decades,” said Crown Prince Haakon.
Crown Princess Mette-Marit also noted the close relationship with Ethiopia as she held a business seminar later in the day.
Etiopia has a unique position in the history of the Norwegian royal family. King Haakon developed a close relationship with Emperor Haile Selassie while they were both in exile in Britain during World War II, said the Crown Princess.
A few years later, Haile Selassie arrived on a state visit to Norway.
The Crown Prince is in Ethiopia on behalf of the Ministry of Foreign Affairs, and that topics for the visit are health and education, migration and refugee situations and, not least, business.
By Jan Speed and NTB