Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. 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. Commonly, Potash refers to Potassium Chloride or Muriate of Potash (MOP), however, a number of other potash variants exist with premium potash types containing micro-nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). We are confident in RA Internationals capabilities to deliver a high-quality product and service.. inequalities, climate action, peace, justice and strong institutions and Click HERE for a free trial now. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. As inflation falls, what can be expected from the Bank of England in the months to come? Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. (MOP) and gypsum, along with rock salt. 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. After the Second World War, it was annexed to Ethiopia. Colluli is only 75km from the Red Sea coast, 87km from a port planned at the Anfile Bay, and 230km from the existing Port of Massawa, making it the SOP deposit closest to a coastline and giving it an advantage over competing projects in neighboring Ethiopia, such as the Yara Dallol project of Yara International ASA (. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. The Colluli potash project is expected to commence production in 2022. the countrys GDP by 2021 and 50% of the nations exports by 2030, while It assesses a wide range of econometric data and includes findings . Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Shallowest known evaporite deposit globally. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea I think you should research about th e author. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. countries-Eritrea - - | Reverso Context The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. The shortfall of projected and actual global potash capacity, from this source. 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. 9. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of fertiliser. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. The JORC-2012 compliant ore reserve estimate at Colluli is estimated at 1,100 Mt at 10.5% K2O for 203 Mt of contained SOP equivalent (Fig. The front-end engineering and design (FEED) study for the project was completed in January 2018. 6. 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. Danakali eyes finish line for Eritrea potash project He is an alone, he is DICTATORSHIP! Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Required fields are marked *. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australia's Danakali and Eritrean National Mining Corporation (ENAMCO). Additional details about the agreement are available in the following announcement >>. body {top:0 !important;} (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. The asset has the potential to produce other fertilizer products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Approximately 4 tonnes of Colluli drill core material have been processed at the Saskatchewan Research Council (SRC) in Canada by way of specific bench testing which has been extremely successful. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Last Updated on: 01 December 2022. Many Eritreans hoped that the peace deal with Ethiopia would create economic opportunities for the country, but there is little sign of that happening yet. The border with Sudan was closed until early 2019 because relations were so bad. providing 10,000 direct and indirect local jobs. Danakali (DNK) - Technical Analysis - Crux Investor On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. The project will be developed in multi-modules, with Module I serving as a platform for future growth. Eritrea Archives - International Mining US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . The cost curve of SOP production as of 2018, from the same source as Fig. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 4. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Enter your email below to receive updates on your featured companies right to your inbox. 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. The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. In August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. 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. partnerships for the SDGs. Artists impression of the plant at the Colluli project. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. These circumstances have resulted in it becoming one of the most isolated states in the world. 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. The development of the Colluli potash projects coincides The project is the only known source of potash that allows extraction of the fertilizer in solid form. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. Danakali explored the use of filtered seawater at Colluli. Finance > M-a. 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. Potash historical demand trends by region, from this source. Colluli is positioned very close to vital potash markets. produce more than 472,000 tonnes a year of Sulphate of Potash. These include: No poverty, zero hunger, quality For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Colluli has significant multi-commodity potential presenting major additional value upside. February 25, 2022. Here Are 10 Other Analyst Forecasts For Tuesday, Berenberg Bank Sticks to Their Buy Rating for Nutrien (NTR), Registration on or use of this site constitutes acceptance of our. Journalists say that getting any information out of the country is extremely difficult. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. It also has access to solar, wind and geothermal energy systems the East African rift. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. Across the country, an estimated two-thirds of households are impacted by food insecurity. Profit was boosted by higher metal grades and prices. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). 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. Mobile data does not exist. Please. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. Potash is the common term for fertiliser forms of the element potassium (K). In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. It is estimated to have about 80,000 archaeological sites. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). Fig. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. . as being forecasted back in 2015 has been removed from the supply side (Fig. 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){}} We have recently upgraded our technology platform. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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. 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. It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. 6. Danakali Lmited is selling share to China. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Danakali rates 2022 potash target unlikely as "all options - Miningmx The Colluli project requires low upfront development costs and is highly scalable for long-life production. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. taxation and exports, and from jobs and skills and economic development of the Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Our people is poor continue!!!! seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. growth and decent work, industry, innovation and infrastructure, reduced