Mr. Parson, an American geologist who explored the Afar Region between 1967-1969, discovered a huge amount of potash mineral in the Dallol Depression, northern part of the Afar Regional State. The Dallol Depression, the shallowest and hotest place in the world, is 100 meters below sea level.

Potash mineral is used as fertilizer. The potash deposit found in the Dallol Depression in Musely and Crescent localities near the Ethio-Eritrean border is estimated at 160 million metric tonnes. But the proven reserve is 130 million metric tonnes. Though the potash deposit was discovered 37 years ago, it has not been utilized.

Sainik Coal Mining Pvt. Ltd., an India Company, and the Ethiopian Ministry of Mines and Energy (MME) on Monday signed an agreement that enables the company to mine the potash deposit on a large-scale. The agreement was signed by the Minister of Mines and Energy, Alemayehu Tegenu and Mr. Nitin Wagh, director of Sainik at the Sheraton Addis.

The mining license grants Sainik an exclusive right for a large scale potash mining within the license area, 10 sq. km for twenty years. The company has also acquired exploration rights for potash and other saline minerals, such as magnesium and calcium. Sainik plans to obtain the minerals by applying solution mining. The company anticipates producing one million metric tonnes of potash per year. According to the agreement, the company will produce 20.85 million metric tonnes of potash in the coming twenty years. Sainik has allocated USD 451,164,784 for the potash mining. The mining project is believed to create job opportunities for 576 citizens. The company mainly plans to process and market the refined product to the international market. The company is already into talks with large potash consumers for long-term supply agreements.

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