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News EthioPotash becomes third firm to lose license in Ministry crackdown on potash.
March 8, 2025
EthioPotash B.V. has become the third company to see its concession for potash extraction in the Afar region revoked by the Ministry of Mines over the past few weeks. It follows in the steps of Circum Minerals and United Potash, both of which have lost their licenses in light of production failures.
A notice addressed to EthioPotash, formerly known as Yara Dallol, and signed by Million Mathiwos, a state minister of Mines, states the company has failed to commence potash production in Afar despite repeated warnings from the Ministry instructing it to do so.
EthioPotash was granted a potash mining license in 2017, covering an area in Afar’s Dallul Woreda. The license agreement obliged the company to finalize development work and begin commercial production within an eight-year window.
However, the deadline has arrived and the firm has not yet embarked on commercial production.
“Our office has repeatedly extended the development period to compensate for time wasted due to force majeure. However, your company has not conducted mining development activity and has failed to commence commercial production as per the provision of mining laws and the agreement signed between your company and our Ministry,” reads Million’s notice.
The Ministry had reportedly issued a final warning to EthioPotash in May 2024, urging the company to fulfil its obligations.
“But there has not been any progress in your activity and you are unable to finalize development work and start commercial production,” reads the notice.