The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. It has been a Unesco World Heritage Site since 2017. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) fertiliser project under development by the Colluli Mining Share Company, a 50-50 joint venture partnership between the Australian start-up Danakali and the Eritrean National Mining Corporation. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. 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. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. It also has access to solar, wind and geothermal energy systems - the East African rift. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. Select LanguageChinese (Simplified)EnglishGerman () // Colluli Potash Project Eritrea The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli sites SOP fertiliser production over a 10-year term, from the Projects date of commissioning. Fig. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. It has had a border war with Ethiopia and a clash along the border with Djibouti. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Annual output Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. Due to this change if you are seeing this message for the first time please make sure you reset your password using the Forgot your password Link. Colluli - Danakali Limited 3. Additional details about the agreement are available in the following announcement >>. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Flour was awarded the FEED contract for the Colluli potash project in January 2017. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. You are talking about the garbage written by Plaut ? US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . 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. To lower infrastructure uncertainties, in August and October 2020, respectively, Danakali appointed RA International Group PLC as the preferred contractor for the supply of accommodation, support services, and other infrastructure buildings, and Aggreko (AGK.LSE) as its preferred power supply contractor for its 12MW HFO power plant at Colluli under a five-year BOOT contract, removing a major infrastructure uncertainty. Danakali to cash out of Colluli - Mining Journal and then onto production in 2022, Danakali said. The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. 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. We need a bit of money.' We use them to give you the best experience. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Development Goals (SDGs). .goog-te-banner-frame {display:none !important;} 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. Colluli Potash Project - MBS Environmental MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . What are my chances of getting my money back? 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. They are in deep need. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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. I am not receiving compensation for it (other than from Seeking Alpha). . Information about Eritrea and the Horn of Africa. 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. education, gender equality, clean water and sanitation, sustainable economic Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. Profit was boosted by higher metal grades and prices. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). 7. 6. In the sprawling mining sector, potash mining is unique in that potash mines typically last decades to even centuries, thus forcing the miners to deploy capital for the long-term return, and that transportation of bulk-tonnage potash tends to lead to regional monopolies. 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 fertilizer. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Required fields are marked *. 6. I have no business relationship with any company whose stock is mentioned in this article. 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. 10). The project has the world's. Looking for a helping hand in the market? The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). The UN sanction was lifted by the UN in November 2018 under Resolution 2444, by the EU in the following month, and by the U.S. in May 2019. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. Danakali to sell stake in flagship Colluli potash project in Eritrea EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. second phase of development, as the project has a possible 200-year plus Colluli contains three potassium-bearing salts in solid form, namely. (. We have recently upgraded our technology platform. Danakali closer to getting Eritrea potash project off the ground ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Enter your email below to receive updates on your featured companies right to your inbox. (. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Reverso Context-: 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){}} A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. The stock chart of Danakali, modified from this source. Potash historical demand trends by region, from this source. 6. In the long run, potash consumption is expected to continue to grow as a result of population expansion. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. The Project has unrivalled potash product versatility. 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. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. 4). The front-end engineering and design (FEED) study for the project was completed in January 2018. inequalities, climate action, peace, justice and strong institutions and Finance > M-a. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . 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. Click HERE for a free trial now. Table 1. Fig. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. .goog-te-menu-value:hover {text-decoration:none !important;} The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. These alternative producers require substantial lead times to generate their harvest salts for processing. Both are below. 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 the commodity supercycle unfolds, you are invited to join The Natural Resources Hub today to take advantage of a slew of generational opportunities alongside Laurentian Research.
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