08 Sept 2014 News Round-Up


Allana Potash Initiates Preliminary Economic Assessment on Production of Sulphate of Potash (SOP)



TORONTO, ONTARIO–(Marketwired – Sep 8, 2014)Allana Potash Corp. (AAA.TO) (“Allana” or the “Company”) announces that it has engaged ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau (“ERCOSPLAN”) to complete a Preliminary Economic Assessment (“PEA”) on Kainitite resources that may be amenable to SOP production on its Danakhil Project in Ethiopia. SOP is commonly used on chloride sensitive crops such as tobacco, fruits and vegetables and vineyards and typically commands a premium price to Muriate of Potash (MOP). The price differential between MOP and SOP is substantial, and has averaged approximately US$ 125-150/tonne above the MOP price over the past several years. However, recently the differential has increased to over US$350/tonne.

Farhad Abasov, President and CEO of Allana, commented, “We are pleased to have engaged ERCOSPLAN to complete a PEA evaluating the potential of the vast Kainitite resources on the Danakhil Project. As we move to completion on the development of our MOP operations, it makes sense to start to plan for the development of SOP as an Allana product line, particularly given the extent of our estimated SOP-based resource. The SOP PEA will proceed independently but in parallel with our development and optimization work on our MOP production facility as outlined in the MOP project’s Feasibility Study completed in 2013. The Kainitite is ubiquitous on our project license and management believes a positive PEA may allow Allana to add significant value for our shareholders. If the results of the SOP PEA are positive Allana may consider establishing a special purpose company dedicated to developing the SOP resources for sale in the global market.”

The Kainitite mineral resources on Allana’s Danakhil Project are extensive (see table below) and dominated by the mineral kainite (4KMg(SO4)Cl x 11H2O). For details on the Kainitite mineral resources see Technical Report entitled “Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia” dated effective April 17, 2013 filed under the Company’s SEDAR profile at www.sedar.com on August 7, 2013.

MEASURED 552.3 19.2
INDICATED 598.2 19.5
INFERRED 481.8 19.8


1. MT=Million Tonnes, tonnage is for in-situ resource with no discount for recovery as mining method is to be determined.

2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimates of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

3. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

The PEA will outline the potential to produce SOP (K2SO4) from kainite derived from the Kainitite Horizon in the project area. The Kainitite Horizon is interpreted as a primary evaporite unit in the basin and has been intersected in diamond drilling in most of the mining license area. The PEA will examine the use of solution mining to mine the Kainitite Horizon and produce 1,000,000 tonnes per year of SOP product from the brine as a separate operation from the current development program which will produce 1,000,000 tonnes per year of MOP.

The PEA will focus on six main areas covering the following:

  1. Preliminary Brine Field Design
  2. Preliminary Evaporation Ponds Design
  3. Preliminary Process Development
  4. Preliminary Definition of Additional Infrastructure
  5. Preliminary Cost Estimates (CAPEX and OPEX)
  6. Preliminary Market Study and Financial Model

ERCOSPLAN has extensive experience with potassium sulphate minerals and processing through its work in the potash industry in Germany where SOP is and has been produced from different combinations of potassium chloride and/or magnesium sulfate bearing minerals. The PEA is expected to be completed by Q1, 2015



GIZ plans major off-grid electricity project in Ethiopia


GIZ plans major off-grid electricity project in Ethiopia
The project falls under the Energizing Development Program – a joint global initiative by Germany, the Netherlands, Norway, Australia, United Kingdom and Switzerland


As Ethiopia is constructing a multi-billion dollar dam project on the Nile among several power-generation projects, European partners are chipping in with an off-grid electrification project that aims to bring electricity to the country’s rural areas.

“In the next three years, the German Agency for International Cooperation (GIZ) plans to facilitate electricity access for further 1.3 million people in rural areas of Ethiopia,” Hannes Utescher, head of GIZ Corporate Communications in Ethiopia, told Anadolu Agency.

The project, he said, falls under the Energizing Development Program – a joint global initiative by Germany, the Netherlands, Norway, Australia, United Kingdom and Switzerland.

The venture aims to help low-income households in off-grid areas gain sustainable access to modern energy services, which would also enable them to access education, communication and refrigeration among others, the GIZ official added.

The program is being implemented in the rural areas of the Amhara, Tigray, Oromia and Southern Ethiopian Peoples regions.

“To date, photovoltaic solar systems have been installed in more than 120 public-sector health centers and eight community centers which had no connection to the electricity grid,” Utescher said.

“They now provide access to modern energy services for more than three million people.”

Moreover, GIZ coordinated and trained more than 600 producers of energy-efficient cook stoves on marketing and production techniques. They have sold almost 750,000 stoves and more than 1.8 million people have benefited from these stoves.

“Using the [energy-efficient] stoves, an average household saves around 575 kilograms of firewood every year,” he said. “Also, four pilot micro-hydropower plants have been constructed in three villages in southern Ethiopia, which can provide up to 23,000 residents with electricity.”

The total budget expenditure of the German agency for off-grid electricity projects has amounted to 11.7 million euro since 2010, Utescher said.

All activities are implemented in collaboration with the Ethiopian Ministry of Water, Irrigation and Energy, he added.



Nation saves 38.9mil USD through blended gasoline


Nation saves 38.9mil USD through blended gasoline


Ethiopia has managed to save 38.9 million USD, used to spend on gasoline imports, over the past six years by supplying ethanol blended benzene, the Ministry of Water, Irrigation and Energy said.

The nation has blended 50.3 million liters of ethanol with 46.8 million liters of benzene during those years, according to Bizuneh Tolcha, public relations and communication head at the Ministry.

Since 2009, the country has been supplying a five percent ethanol and 95 percent benzene blend (technically known as E5) to the market.

A Sudanese owned oil company, Nile Petrol, was a sole agent for the blending process and distribution for the product.

Ethanol content in the gasoline has increased to 10 percent since 2011 and now three oil companies, Nile Petroleum, Oil Libya and National Oil Ethiopia are responsible for the blending process and distribution, it was noted.

Up on completion of the ongoing 10 sugar factories, the country’s annual ethanol production will reach 181 million liters, Bizuneh said.



Premier urges farmers to utilize improved technologies


Premier urges farmers to utilize improved technologies


Prime Minister Hailemariam Dessalegn urged farmers in Gamo Gofa Zone of South Ethiopia Peoples’ State to use modern agricultural technologies and inputs to increase production and productivity.

While discussing with farmers, the Premier said farmers need to utilize improved technologies to fully exploit the untapped potential for agriculture.

The area has a potential to produce high amount of wheat and sesame if they utilize improved technologies, select seed and fertilizers.

He promised that the government could establish a commodity exchange next year, if they managed to harvest one million quintals output.



Arbaminch-Humbo road first phase construction completes


Arbaminch-Humbo road first phase construction completes


The first phase of the Arbaminch-Humbo road construction has been completed.

Out of 106 km of Arbaminch-Humbo road 75km was completed in this phase and inaugurated on Friday with the presence of Prime Minister Hailemariam Desalegn.

This once poor gravel road had been a source of discomfort for the community over the last 45 years, it was stated.

‘We were not able to pass the bridge unless we kept a long line. Many cars got broke down here,’ said a driver,expressing his happiness over the completion the first phase construction.

Premier Hailemariam said on top of easing the suffering of the people, the road will play a crucial role in improving the region’s tourist flow.

‘The Arbaminch environ is known for its natural wealth. There are two lakes. The tourist potential is enormous. In addition, the area has been selected as horticultural site at the Federal level. In the future the area will be a hub for agro-processing products as well as fruits and vegetable production. Generally the road will contribute its share in developmental endeavors,’ he said.

The construction of the Arbaminch-Humbo road will shorten the time that used to take on the road, from 6 to 1 and half hours, it was learned.

According to Ethiopian Road Authority, the first phase of the road cost 826 Million Birr.

The second phase that covers the remaining 31 km long is underway and expected to be completed by next year.

The Arbaminich-Humbo road connects Welayita and Gamogofa zones in the Southern Nations, Nationalities and people’s state.



Ethiopia, Germany sign 123.8 mln Euro dev’t cooperation



Ethiopia and Germany yesterday signed 123.8 million eruro development cooperation aimed at supporting the implementation of projects in three main focal areas–agriculture, education and biodiversity in the coming three years (2014- 2017).

Signing the agreement, Ministry of Finance and Economic Development (MoFED) State Minister Ahmed Shide said that Ethiopia enjoys good relations with Germany which supported it in realizing the MDGs. He also acknowledged the commitment of Germany in working with Ethiopian development issues.

He also reaffirmed that Germany continues cooperating with Ethiopian.



 Five water projects to go operational

Addis Ababa Water and Sewerage Authority (AAWSA) said five water projects under construction with 5 billion birr will go operational this Ethiopian budget year.

Authority Water Supply and Distribution Deputy General Manager, Fekadu Zeleke, told WIC today that the water project will go operation between late this month and May.

Once completed the projects would raise the potable water supply in the country to 599,000 cubic meters from 350,000  cubic meters now, thereby alleviating the shortage the city is currently facing, he said.
Two underground water projects at Akakai each with a capacity to produce 70,000 cubic meters of water per day will begin rendering service late this month and by the coming February, he said.

Expansion at Legedadi and Dire dam water projects as well as construction of Akaki phase II will be finalized this Ethiopian budget year, hence enabling the authority to supply additional 88,000 cubic meters of water into the system, he added

According to Fekadu, the authority is also sinking 20 water wells that can produce 21,000 cubic meters of water per day in areas which are currently facing water problem.
According to him, some 4 of the water wells have already begun rendering service, according to Fekadu.



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