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Dallol Potash
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 29979
Company nameAllana Potash Corp
Ethiopia (IDA)
Sector1Miscellaneous and Industrial Ores (Including Magnesite, Fluorite, Sulfur, Soda Ash, Clays, Gypsum, Lime, Peat, Boron, Diatomite, Feldspar, etc.)
Environmental categoryB
Date SPI disclosedMarch 25, 2011
Projected board dateApril 26, 2011
Previous EventsInvested: May 10, 2011
Signed: May 5, 2011
Approved: April 28, 2011
View Environmental & Social Review Summary (ESRS), click here
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Project description
Allana Potash Corp (“the Company”, or “Allana”) is exploring for potash on three contiguous licenses located in the Danakil Depression (“the Project”). The Danakil Depression is a desert area in north-east Ethiopia, close to the border with Eritrea. The potash mineralization in the Danakil Depression is well known and was mined intermittently from the early 1900s. The Project area covers part of the previously defined Musley potash deposit that was discovered between 1958 and 1967. The Musley deposit was at that time reported to contain a resource of 171.27 million tonnes grading 32.48 % KCl. Project area covers part of the Musley deposit and has a historic inferred potash resource of 105.2 million tonnes with a composite grade of 20.8 %. The resource potential of the entire Danakil Depression is significant and is believed to be in the order of a billion tonnes.

Allana has sought strategic investors to help develop the Project. The Company recently announced strategic partnerships with two major investment houses. The Company is also seeking IFC’s engagement as a strategic partner to provide additional financing for the Project and help develop the Project in line with industry best practice in environmental and social sustainability.

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