The jury is still out regarding the 50/50. Some say it pertains...

The jury is still out regarding the 50/50. Some say it pertains only to the 30% that STB is negotiating with the government; not the 50/50 for the whole project. Even if it is 50/50 for the whole project; it is a mere 10% extra (profit) for a $60b IGV.

What it really means is the government refusal to bear any costs and losses for the project. Given how heavily the government is involved in all the other mining projects, it is prudent to step aside in a huge project like this. The government simply cannot put all the eggs into the mining sector.

But I can't see that the profit sharing as a reason for the sell off. More likely, the fear that the price of potash will be driven down by the number of projects that will be online by 2016. Or simply, the SP is driven down for the negotiating. Many will be watching this negotiation keenly, and the Eritrean government can't send too many negative signals.