Circum Minerals Ltd. has announced that its license application for it mining project in Danakil, Ethiopia has been approved by the country’s Council of Ministers.
Under the agreement, Circum Minerals will have an exclusive access to the 4.9 billion tons of the potassium resource in the mining site. The company’s operations will cover 365 square kilometers of land and continue for 20 years as initial contract period. The contract is also renewable for further 10-year periods, considering that the project continues to show financial viability.
The potassium-bearing minerals, which are said to be found at relatively shallow depths, will be extracted using the low-risk solution mining. Basically, they will be processed through crystallization in solar ponds before being refined in a plant. All in all, the process is said to return operating costs that are projected to be among the lowest in mining for potassium chloride and potassium sulphate.
Expressing his gratitude for the provision of the license, Circum Minerals chairman Stephen Dattels stated:
“We are delighted that the Ethiopian Government has approved the Mining License for this world class project. This represents a significant milestone for both the Company and the Country. We now have a compelling investment case that supports the development of this project given our discovery and proving of its vast resource, our demonstration of its outstanding financial viability, the successful operation of our solution mine and subsequent production of potash products and most importantly, the strong level of Government support we have been afforded which is demonstrated by the award of the Mining License.”
The mining project was awarded the license after the company submitted a comprehensive set of pre-requisites, including a definitive feasibility study, an environmental and social impact assessment, detailed operation models, and associated management plans.