(PRESS RELEASE) OSLO, 4-Jul-2022 — /EuropaWire/ — Yara International ASA, a global firm specializing in agricultural products and environmental protection agents and a leading global ammonia player, has announced the divestment of its interest in the planned Sulphate of potash (SOP) mining project in the Afar region of Ethiopia. The company has just signed a Share Purchase Agreement with XLR Enterprises Limited for the sale of its ownership in the Dallol mining project in the country.
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.
Silje Ingeberg Nygaard, Head of Investor Relations
Mobile: (+47) 957 04 843
Brede Hertzenberg, Head of Communications
Mobile: (+47) 906 09 009
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2021, Yara reported revenues of USD 16.6 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
SOURCE: Yara International ASA