Capital Ethiopia Newspaper

BHP to pullout of Ethiopia

The largest mining company in the world, BHP Billiton, is to pullout of the Dallol potash project in the Afar Regional State. Reliable sources said that BHP has notified its decision to withdraw from the Dallol potash project to the Ministry of Mines. Sources said that the company asked for clearance from the ministry adding that the reason for their withdrawal is not yet clear. The Anglo-Australian mining giant has been prospecting for potash mineral in the Dallol Depression. The company has conducted seismic survey and drilled boreholes to make potash reserve deposit estimate found in the area.
Studies indicate that there is a potash mineral deposit amounting to 160 million tons in the Dallol depression. Sainik, Indian company, BHP and Allana Resources are among the companies that have concessions in the Dallol Depression. BHP’s withdrawal will be a big letdown for the Ministry of Mines which at the same time is hard hit by staff turnover. Professionals have been leaving the ministry in search of better pay. It has been almost a year since the Ministry stopped accepting new applications for mining licenses. The professionals in the area have been complaining about the leadership crisis at the ministry.
(The Reporter)