OSLO, NORWAY: Yara International has signed a Share Purchase Agreement with XLR Enterprises Limited to sell its ownership interest in the Dallol mining project in Ethiopia.

The Dallol mining project comprises a planned Sulphate of potash (SOP) mine in the Afar region in Ethiopia. Yara has been the majority shareholder in the project, with XLR Enterprises Limited and Liberty Metals and Mining Holdings, LLC as partners. The project has been on hold since 2019 while working on structural solutions for the next stage of development of the project.

The divestment supports Yara’s transformation by reallocating capital and risk appetite towards its strategic focus areas.

Yara’s full legal ownership interest in the project together with all economic rights and all obligations and liabilities attaching or relating thereto will be transferred to XLR Enterprises at closing. As Yara recognized an impairment loss of USD 232 million in fourth quarter 2021, the impact on Yara’s second-quarter results is immaterial following the transaction.

The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions.