Circum Minerals Awarded Ethiopian Potash Mining License

The license will allow Circum Minerals to exploit potassium-bearing minerals which exist at relatively shallow depths within the vast license area.

By Henry Lazenby (miningweekly.com) |

Vancouver, Canada–London-based potash project developer Circum Minerals has secured a mining license for its Danakil potash project.

The license was approved by the Council of Ministers of the Federal Democratic Republic of Ethiopia and gives Circum Minerals exclusive access over the 4.9-billion-tonne Canadian National Instrument 43-101-compliant potassium resource contained within the 365 km2 license area, for an initial period of 20 years. It is renewable indefinitely for further ten-year periods, should the project continue to be financially viable.

The license allows the company to exploit potassium-bearing minerals which exist at relatively shallow depths within the vast license area. The minerals will be exploited by solution mining, the lowest-risk mining method suitable to this region, and will be processed by crystallization in solar ponds before final refining in a process plant.

A 2015 definitive feasibility study (DFS), which was optimized in February 2016, calculated an after-tax project net present value, at a 10% discount, of $2.1-billion and an after-tax internal rate of return of 25.8%.

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