Liberty Metals & Mining Holdings, a subsidiary of Boston-based Liberty Mutual Insurance (LMM) has acquired 25 percent of shares in Yara Dallol for $51.25 million.
* Yara's share of proceeds is $35.4 million.
* Following this transaction Yara will hold 51.8 percent of the shares, LMM 25 percent and XLR Capital Limited 23.2 percent in Yara Dallol.
* Yara Dallol is a project looking at extracting potash in the Danakil depression in North-Eastern Ethiopia.
* The feasibility study confirmed reserves and the technical viability for an annual production of 600,000 metric tonnes sulphate of potash (SOP) over a 23-year period.
* Yara Dallol has additional resources to either expand annual production or increase the life of the project, as new market segments for SOP are developed.
* Yara Dallol aims to begin mining activities by the end of 2018. The independent feasibility study estimated the capital expenditure of the project at $740 million and cash cost at $167 per metric tonne delivered (fob) Djibouti, among the lowest in the industry.
* Closing is expected before the end of 2015, and the final investment decision for the project is planned for mid-2016. Source text for Eikon: Further company coverage: (Reporting by Gwladys Fouche)
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