ICL to build three fertilizer factories in Ethiopia,Africa

Date:04-07-2015

Israel Chemicals Ltd (ICL), the Israel fertilizer giant that is investing in the Afar potash mine, is planning to build three fertilizer factories in Ethiopia, Africa.

In a written response to The Reporter, Amir Avramovitz, director of corporate communications and public affairs, said that ICL is in advanced discussions with the Ethiopian government about the construction of three or more fertilizer blending plants in the country to produce world class mixed nutrient fertilizers. Avramovitz said that acquisition of Allana will enable ICL to accelerate the development of Allana's concession to mine potash in Ethiopia.

Last week ICL agreed to buy the 84 percent outstanding shares of Allana Potash, owner of the Danakil potash mine. Last year ICL bought 16 percent shares on Allana for USD 25 million and last week concluded a deal to acquire the remaining shares valued at around 150 million Canadian dollars. The deal is subject to shareholders' approval.

"Acquiring ownership of Allana will enable ICL to control the development of the Danakil project, accelerate pre-construction engineering design work, as well as secure project financing and reduce the company's risks associated with the project. ICL also believes that owning all of Allana will better enable it to fully leverage its decades of expertise worldwide in potash extraction, production and marketing activities to bring the Dallol project to fruition. Acquiring Allana will further contribute to ICL's commitment to the project, thereby increasing the potential of its successful development," Avramovitz said.