Allana Potash (PINK:ALLRF)

China May Finance Ethiopian Mine

China's $300 billion sovereign wealth fund may finance China Mining United Fund's plan to develop a potash project in Ethiopia that is also being eyed by mining giant BHP Billiton Ltd., a senior official familiar with the situation said Thursday.

China Investment Corp. is studying whether to take a stake in the potash project being jointly developed by China Mining United Fund and Canada's Allana Potash Corp., or finance part of the project's construction costs, the person familiar with the situation said.

According to China Mining's Web site, the potash project is one of the largest in the world, with projected output of about 200 million metric tons.

CIC's possible involvement in the pursuit of potash, used in fertilizers, highlights China's growing demand for the mineral, as it seeks to boost its agricultural output.