The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. February 25, 2022. Copyright 2023, All Rights Reserved | Alphastox | Proudly Hosted by, Danakali to sell stake in flagship Colluli potash project in Eritrea, Canada Nickel develops new method for accelerated carbon capture, Patriot Battery Metals drills nine holes at Corvette, Metso Outotec expands digital grinding inspections with acquisition of Global Physical, Fatal accident at Ivanhoes Kamoa-Kakula mine in Congo. Its constitution has not been implemented, the parliament has been prorogued for many years, the ruling party has not held a congress for a number of years and independent media is banned. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. Danakali appoints Aggreko as power contractor at Colluli Colluli - Danakali Limited Posted by Daniel Gleeson on 21st August 2020. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. A two-and-a-half-year border war between Ethiopia and Eritrea ended in June 2000 and was followed by about eight years of heightened tension and hostility between the two countries. As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). body {top:0 !important;} In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. The shortfall of projected and actual global potash capacity, from this source. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Plus500. Danakali rates 2022 potash target unlikely as "all options - Miningmx 2). (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Danakali to sell stake in flagship Colluli potash project in Eritrea PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. On December 3, 2019, Africa Finance Corporation also agreed to make a US$50 million equity investment in two tranches at A$0.60 per Danakali share. Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. The FEED results and the recent completion of test work and additional verification provide a higher level of financial certainty to project financiers, further de-risking the investment proposition. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 4. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritreas key import/export facility. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. There are 70 Subscribers monitoring this project. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The project will be developed in multi-modules, with Module I serving as a platform for future growth. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. growth and decent work, industry, innovation and infrastructure, reduced The front-end engineering and design (FEED) study for the project was completed in January 2018. countries-Eritrea - - | Reverso Context A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. Colluli Mining Share Company secured 165m ($200m) of senior debt finance from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) in August 2019. Are the rights of those working on the site ensured, or will they be slaves forced to work on the mine as National Service conscripts? Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. The Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. stream Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). Proudly Researched by: Melanie Miles. Colluli is positioned very close to vital potash markets. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea.The project is the only known source of potash that allows extraction of the fertilizer in solid form. Fig. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The asset has the potential to produce other fertilizer Click HERE for a free trial now. AustraliasDanakali(ASX: DNK) is selling its 50% stake in the Colluli potash project in Eritrea, Africa, almost 13 years after partnering with the Eritrean National Mining Corporation (ENAMCO) to build the mine.Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.The Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 4). Phase one involving an estimated capital investment of $298m is expected to produce 472,000 tonnes (t) a year of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000t of SOP from year six of the project with an additional capital investment of $202m. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. partnerships for the SDGs. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. taxation and exports, and from jobs and skills and economic development of the Flour was awarded the FEED contract for the Colluli potash project in January 2017. Danakali to start developing vast potash project in Eritrea Since then, potash price has fallen from the neighborhood of US$600/t MOP to as low as USS$200/t MOP by 2017, and has since been fluctuating between US$200/t and US$270/t. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. Asmara is a beautiful city and awash in colonial Italian architectural gems. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. The Colluli potash mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritreas key import/export facility. They have significant experience in executing projects of the scale and quality required for the Colluli project. Simplified process flow for the production of SOP from the Colluli resource, from this source. Reverso Context-: The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. This post has been syndicated from a third-party source. The proximity to the coast and the established port infrastructure in the Port of Massawa gives Colluli unrivalled access to global export markets, and it also decreases logistics costs from the mine gate onto the ship. Mining in Eritrea: could a new potash project spur sustainable growth? Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. There is also potential for kieserite 6. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Finance > M-a. and then onto production in 2022, Danakali said. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. "In the beginning, things were fine, but gradually it became clear to President Isaias [Afwerki], who led the independence struggle for 30 years, that things were not going the way he expected them to," said Martin Plaut, the former Africa Editor of the BBCs World Service, in an interview in 2019. In 2023, Botswana expects diamond output to decline by 1%. Fig. 10). Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. The project is the only known source of potash that allows extraction of the fertilizer in solid form. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Colluli contains three potassium-bearing salts in solid form, namely. The Colluli project lies in an area that saw detailed geological and geochemical work by USAID and US Geological Survey with the Eritrean Ministry of Mines and Energy. The saleable SOP product will be trucked via road for sipping to the Massawa port which is located approximately 230km north-west of the project site. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. Standard, granular and soluble products can be produced for distribution to the market. Morgan Leighton. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritrea's key import/export facility. It is estimated to have about 80,000 archaeological sites. Agnico Eagle's EPS beat expectations; guidance maintained. A port development at Anfile Bay could assist in unlocking this potential. 3. The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Fig. These alternative producers require substantial lead times to generate their harvest salts for processing. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Danakali, an Australian company that has been developing the Colluli potash project in Eritrea, was recently granted permission by the Eritrean Ministry of Energy and Mines to commence commercial production at Colluli. function GTranslateFireEvent(element,event){try{if(document.createEventObject){var evt=document.createEventObject();element.fireEvent('on'+event,evt)}else{var evt=document.createEvent('HTMLEvents');evt.initEvent(event,true,true);element.dispatchEvent(evt)}}catch(e){}} Eritrea's potash mining takes shape but questions remain The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For #google_translate_element2 {display:none!important;} Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. The agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. The operating environment weighed heavily on Danakalis decision, as Eritrea is ruled by one of the worldsmost oppressive regimes and was until 2018 on the UNs sanctions list. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Your email address will not be published. Colluli is located in the Danakil Depression . endobj The proximity to the coast and the established port infrastructure in the Port of Massawa gives Colluli unrivalled access to global export markets, and it also decreases logistics costs from the mine gate onto the ship estimated at US$73/t. - - | Reverso Context Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Enter your email below to receive updates on your featured companies right to your inbox. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Status: Design. It also has access to solar, wind and geothermal energy systems the East African rift. Eritrea has one of the most erratic economies in the world, partly due to chronic drought and highly variable agricultural output: its GDP surged by 31% in 2014 before plummeting by -20.6% in 2015. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. finished in June, will take the company a step closer to the construction phase The project has the world's. According to Reporters Without Borders, only North Korea has less press freedom. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . The deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness. Danakali to cash out of Colluli - Mining Journal I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. The Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. I based my assertion of Eritrea being ONE of the most oppressive regimes on a series of reports by human rights advocates such as Human Rights Watch (https://www.hrw.org/world-report/2021/country-chapters/eritrea) as well as sites such as D+C (https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes). After the Second World War, it was annexed to Ethiopia. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. He is an alone, he is DICTATORSHIP! I think you should research about th e author. of Eritrea and Ethiopia, which officially declared peace in July 2018. It describes Eritrea as "a dictatorship in which the media has no rights". Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertiliser. The three key objectives set for the second phase of development included updating the capital estimate, project schedule and identifying key test work required to move into Phase 3. As inflation falls, what can be expected from the Bank of England in the months to come? Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. inequalities, climate action, peace, justice and strong institutions and development of the project, and the expected significant boost to royalties, Danakali looks into solar, wind to power Eritrea potash project The deposit stretches across the border into Ethiopia. Therefore, a wide moat that's rarely seen in miners of other commodities can be found among potash miners, such as Nutrien Ltd (NTR), as discussed by fellow Seeking Alpha authors. as being forecasted back in 2015 has been removed from the supply side (Fig. The Danakil Depression, which extends over 300km into eastern Ethiopia, hosts over 6,000 Mt of potassium-bearing salts suitable for the production of potash fertilizers. It then plans to distribute 90% of the net proceeds to shareholders and will continue as a listed company to identify new projects and potential new alternative growth opportunities. Colluli has significant multi-commodity potential presenting major additional value upside. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Ok as claimed above I dure hope the dictatorship in place will be nice enough this time around to be honest and work for the sake of the people and show the truth about the budgetary issues to the public unlike what the dictatorship did on the gold mining sector.we Eritreans cannot wait to see the benefits of the potash industry on projects that will enhance peoples living standards and create a sustainable economic growth as stipulated on the government sustainable development goals and agendatime only will tell if the dictatorship will have a changing to work for the betterment of the country but not gew clicks. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. M&A: Mining Finance | Mining Journal With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). It also said that all vendor and contractor packages have now been received. Shareholders are slated to . Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Danakali Lmited is selling share to China. The Colluli potash project also involves evaporation ponds, a run-of-mine (ROM) pad, a sewage treatment plant, fuel storage tanks, accommodation camp, workshops, warehouses, and a main administrative building. 3). The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. Potash reserves among the world's largest - Economist Intelligence Unit Has access to the Ethiopian side of the deposit been guaranteed? In the initial phase of operation, Wage said, Colluli would The border with Sudan was closed until early 2019 because relations were so bad. PDF owned by For personal use only (. %PDF-1.7 The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. The front-end engineering design (FEED), expected to be To open fire on your own disabled [people] is pretty appalling.". Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 6. The Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. Over the past two decades, many hundreds of thousands of Eritreans have fled military conscription and economic uncertainty in their home country and Eritrea has become a major source of migrants and refugees to Europe, in particular to Sweden, Germany and the Netherlands. It is a member of the African Union, the UN and the Intergovernmental Authority on Development which deals with issues around drought and desertification in the Horn of Africa but it is the only African country (out of 55) not to sign up to the African Continental Free Trade Area, the huge free trade area that went live on 1 January 2021. <> Danakali explored the use of filtered seawater at Colluli. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries.
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