Thursday April 11, 2013, 4:00am PDT
By James Wellstead - Exclusive to Potash Investing News
After inking key potash supply contracts with China and India earlier this year, confidence has returned to the potash sector. But just how much new potash supply is required and where it will come from is still unknown.
Currently a number of potash projects are in a variety of development stages, and many have plans to begin soon. With projects coming from established regions like Saskatchewan and eastern Europe, a number of projects are also opening eyes to the potential of other regions like the US, Brazil and Africa.
Dallol potash project, Allana Potash (TSX:AAA): Centered in the shallow potash deposits of the Dankhail Depression in Ethiopia, Allana’s Dallol projects is one of the most advanced potash projects. With the feasibility study now complete, Allana plans to enter into pre-construction on measured and indicated mineral resources totalling 1,298 Mt containing 251M tonnes of KCl (19.3 precent KCl) and additional inferred mineral resources of 588M tonnes containing 109M tonnes of KCl (18.6 percent KCl).
With only 60 percent of the property surveyed, Allana is confident the figures could grow. And at depths of typically less than 100m from the surface, total CAPEX is just $642 million, with an OPEX of $98.75 loaded on the ship.
Some of the biggest concerns with the project remain around the location of the project – in the border between two former warring nations. But the company continues to standby the projects security and stability as they prepare for pre-operations for Q4 2013.
Securities Disclosure: I, James Wellstead, hold no direct investment interest in any company mentioned in this article.