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Wednesday, May 14, 2014 2:54:15 PM
Allana Potash is pleased to forward a summary of the site tour attended by analysts and investors from May 7th and 8th in Ethiopia. On Day 1 attendees had an opportunity to meet with Ethiopian government officials who provided updates on important factors contributing to the development of Allana's Ethiopian Potash Project. Attendees also enjoyed a productive dinner meeting with Stefan Borgas, CEO of ICL and David Usher, Canadian Ambassador to Ethiopia. On Day 2, attendees travelled to the Danakhil project site and Allana's camp in Dallol, Afar Region.
A high level delegation including Idan Ofer (controlling shareholder of Israel Corp., ICL's largest shareholder) and ICL executives Stefan Borgas (CEO) and Yoram Cohen (General Manager of ICL Africa and AAA Board Member), also visited the project the day before our investor site tour and conducted meetings with government officials including the President of Ethiopia on May 8th. ICL was very impressed with our project, our staff, and the potential for the development of our project in Ethiopia.
The attendees left Ethiopia with a thorough update on Allana's progress and upcoming milestones and were very encouraged with the strategic partnership with ICL and the progress demonstrated in AAA's path to production
link to PDF
Day 1- Addis Abeba, Ethiopia (May 7, 2014)
Meeting with Mr. Getachew Tamiru State Minister of Transport
• Mr. Getachew Tamiru spoke of his Ministry`s five year transportation transformation plan and progress to date
• Over 15,000 km of highways and 21,000 km of rural roads have been completed since the start of the plan( after only 3.5 years in)
• The road from AAA’s Dallol site to Afdera is partially complete with approx. 100 km yet to be completed
• The feasibility study for this important segment of road will be completed by June and funding provided by the government soon thereafter
• Construction of this road segment is expected to be completed is expected before the start-up at Dallol in 2016
• Over 2400 km of railway line construction contracts (to be built over 5 different corridors) construction contracts have been awarded, but not all have all been funded as yet. However, bank financing for these lines are progressing
• The line from Addis to Doraleh port in Dijbouti (760km) is 40% complete and will likely be ready by 2016
• The rail line (540km) from Hara Gebeya to the new port in Tadjoura (important for AAA) is scheduled to be completed by 2018, but financing is still pending
Meeting with the Prof. Tekalegen Mamo, State Minister for Agriculture
• Prof. Tekalegen Mamo gave an update of his Ministry`s involvement and progress with the Agricultural Transformation Authority (ATA)
• Both AAA & ICL are contributing funds and expertise to this ambitious initiative to promote nutrient application to boost crop yields
• Substantial progress has been made with soil mapping, soil fertility and site trials with different NPK and sulfur fertilizer formulations
• It is estimated that farmers in Ethiopia use less than 0.001 kg per ha of KCl and should use anywhere from 50-100 kg per ha
• Significant crop yield improvements are already being seen at these site trials (600 demonstration areas already established)
• It is estimated by the ATA than 3.5 million farmers will be able to utilize these new fertilizer formulations which includes a good portion of KCl
• 5 new fertilizer blending plants will be built over the next few years, with the first one nearly ready for its official opening
• Each plant will be able to blend 300,00 tonnes of MAP & DAP annually and use approximately 100,000 tonnes of KCl
• The ATA estimates that Ethiopia could utilize 18-20 such plants as it moves towards more modern agricultural systems
Meeting with Mr. Abraham Tekeste, State Minister of Finance and Economic Development
• Mr. Abraham Tekeste gave a summary of the government’s support of Allana`s project, and the excellent track record of the Company in fulfilling its obligations over the years
• Over the past 10 years, as a result of the government`s “open for business” polices , the general economy has grown tremendously
• More attention is being paid to the mining sector for economic development potential as the country slowly moves from an agrarian to a more modernized agri- industrialized focus
• Allana was highlighted as the example for all mining companies to follow in terms of its operational integrity and social responsibility
• The Ministry is also committed to infrastructure development for the country and the mining industry in particular
• Mr. Abraham Tekeste also stated that Allana`s project was crucial for the industrial and social development of the Afar region and would work to ensure that all Government incentives and benefits would be put forward for our project
• Mr. Abraham Tekeste was asked if there was a “potash for loans” deal with the Chinese (that was widely reported in the press last week) and he stated there is nothing of the kind in the works (the Minister of Mines had indicated this as well)
Dinner meeting with Stefan Borgas, CEO of ICL and Yoram Cohen, General Manager of ICL-Africa and AAA Board Member
• Both Mr. Borgas and Mr. Cohen briefly addressed our site tour dinner and each expanded on ICL`s support for our project and for Africa
• Mr. Borgas indicated that he was again impressed with Allana’s project, site work accomplished to date, and the expertise of our staff, as well as the potential for potash demand in Ethiopia and Africa
• He told our group that Africa`s potential demand for potash could mirror that of Brazil’s (which uses 8-9 million tonnes of KCl per year over the next several years)
• He also stated that as his company becomes more comfortable with our project, Ethiopia and Africa, more investments will likely be made as he believes this is a huge, un-tapped market for potash waiting to be developed
• The evening was rounded out by very supportive remarks from Mr. David Usher, Canadian Ambassador to Ethiopia who, reiterated his and the Government of Canada`s support for Allana`s project and for Ethiopia
Day 2 – Danakhil Project Site, Afar Region (May 8, 2014)
• The AAA site tour moved from Addis (Day 1) to the Danakhil project site and camp in Dallol, Afar region
• Jason Wilkinson, Allana’s VP of Operations presented a full technical report and update on the project and the solution mining process, as well as Allana’s social responsibility initiatives in the area
• All project activities are on track with updated aquifer flow rate testing and full, commercial-sized cavern creation process testing now getting underway
A high level delegation including Idan Ofer (controlling shareholder of Israel Corp., ICL's largest shareholder) and ICL executives Stefan Borgas (CEO) and Yoram Cohen (General Manager of ICL Africa and AAA Board Member), also visited the project the day before our investor site tour and conducted meetings with government officials including the President of Ethiopia on May 8th. ICL was very impressed with our project, our staff, and the potential for the development of our project in Ethiopia.
The attendees left Ethiopia with a thorough update on Allana's progress and upcoming milestones and were very encouraged with the strategic partnership with ICL and the progress demonstrated in AAA's path to production
link to PDF
Day 1- Addis Abeba, Ethiopia (May 7, 2014)
Meeting with Mr. Getachew Tamiru State Minister of Transport
• Mr. Getachew Tamiru spoke of his Ministry`s five year transportation transformation plan and progress to date
• Over 15,000 km of highways and 21,000 km of rural roads have been completed since the start of the plan( after only 3.5 years in)
• The road from AAA’s Dallol site to Afdera is partially complete with approx. 100 km yet to be completed
• The feasibility study for this important segment of road will be completed by June and funding provided by the government soon thereafter
• Construction of this road segment is expected to be completed is expected before the start-up at Dallol in 2016
• Over 2400 km of railway line construction contracts (to be built over 5 different corridors) construction contracts have been awarded, but not all have all been funded as yet. However, bank financing for these lines are progressing
• The line from Addis to Doraleh port in Dijbouti (760km) is 40% complete and will likely be ready by 2016
• The rail line (540km) from Hara Gebeya to the new port in Tadjoura (important for AAA) is scheduled to be completed by 2018, but financing is still pending
Meeting with the Prof. Tekalegen Mamo, State Minister for Agriculture
• Prof. Tekalegen Mamo gave an update of his Ministry`s involvement and progress with the Agricultural Transformation Authority (ATA)
• Both AAA & ICL are contributing funds and expertise to this ambitious initiative to promote nutrient application to boost crop yields
• Substantial progress has been made with soil mapping, soil fertility and site trials with different NPK and sulfur fertilizer formulations
• It is estimated that farmers in Ethiopia use less than 0.001 kg per ha of KCl and should use anywhere from 50-100 kg per ha
• Significant crop yield improvements are already being seen at these site trials (600 demonstration areas already established)
• It is estimated by the ATA than 3.5 million farmers will be able to utilize these new fertilizer formulations which includes a good portion of KCl
• 5 new fertilizer blending plants will be built over the next few years, with the first one nearly ready for its official opening
• Each plant will be able to blend 300,00 tonnes of MAP & DAP annually and use approximately 100,000 tonnes of KCl
• The ATA estimates that Ethiopia could utilize 18-20 such plants as it moves towards more modern agricultural systems
Meeting with Mr. Abraham Tekeste, State Minister of Finance and Economic Development
• Mr. Abraham Tekeste gave a summary of the government’s support of Allana`s project, and the excellent track record of the Company in fulfilling its obligations over the years
• Over the past 10 years, as a result of the government`s “open for business” polices , the general economy has grown tremendously
• More attention is being paid to the mining sector for economic development potential as the country slowly moves from an agrarian to a more modernized agri- industrialized focus
• Allana was highlighted as the example for all mining companies to follow in terms of its operational integrity and social responsibility
• The Ministry is also committed to infrastructure development for the country and the mining industry in particular
• Mr. Abraham Tekeste also stated that Allana`s project was crucial for the industrial and social development of the Afar region and would work to ensure that all Government incentives and benefits would be put forward for our project
• Mr. Abraham Tekeste was asked if there was a “potash for loans” deal with the Chinese (that was widely reported in the press last week) and he stated there is nothing of the kind in the works (the Minister of Mines had indicated this as well)
Dinner meeting with Stefan Borgas, CEO of ICL and Yoram Cohen, General Manager of ICL-Africa and AAA Board Member
• Both Mr. Borgas and Mr. Cohen briefly addressed our site tour dinner and each expanded on ICL`s support for our project and for Africa
• Mr. Borgas indicated that he was again impressed with Allana’s project, site work accomplished to date, and the expertise of our staff, as well as the potential for potash demand in Ethiopia and Africa
• He told our group that Africa`s potential demand for potash could mirror that of Brazil’s (which uses 8-9 million tonnes of KCl per year over the next several years)
• He also stated that as his company becomes more comfortable with our project, Ethiopia and Africa, more investments will likely be made as he believes this is a huge, un-tapped market for potash waiting to be developed
• The evening was rounded out by very supportive remarks from Mr. David Usher, Canadian Ambassador to Ethiopia who, reiterated his and the Government of Canada`s support for Allana`s project and for Ethiopia
Day 2 – Danakhil Project Site, Afar Region (May 8, 2014)
• The AAA site tour moved from Addis (Day 1) to the Danakhil project site and camp in Dallol, Afar region
• Jason Wilkinson, Allana’s VP of Operations presented a full technical report and update on the project and the solution mining process, as well as Allana’s social responsibility initiatives in the area
• All project activities are on track with updated aquifer flow rate testing and full, commercial-sized cavern creation process testing now getting underway
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