colluli potash project in eritrea 2022

Table 1. And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. 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 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. I wrote this article myself, and it expresses my own opinions. All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Australia's Danakali (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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Your email address will not be published. 9). 4. The project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. Has access to the Ethiopian side of the deposit been guaranteed? Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Disclosure: I am/we are long SBMSF, CMP. Simplified process flow for the production of SOP from the Colluli resource, from this source. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Notify me of follow-up comments by email. as being forecasted back in 2015 has been removed from the supply side (Fig. Click HERE for a free trial now. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). region, chief executive Niels Wagetold MINING.COM last year. You are talking about the garbage written by Plaut ? Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. The company expects to start full commercial production in mid-December 2022. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. I think you should research about th e author. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Profit was boosted by higher metal grades and prices. Our people is poor continue!!!! 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. February 25, 2022. This project has been viewed 588 times. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Why isn't Europe investing more in recycling plastic. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. Potash is an important fertiliser. Eritrea: potash and the pariah state - Investment Monitor Potash is the common term for fertiliser forms of the element potassium (K). advance its sustainable development agenda, which are 13 priority Sustainable 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. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. This post has been syndicated from a third-party source. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} There is also potential for kieserite In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net 4 0 obj DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at finished in June, will take the company a step closer to the construction phase The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. 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. 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). Danakali (DNK) - Technical Analysis. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 5). 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. Image courtesy of Danakali. Fig. The asset has the potential to produce other fertilizer Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. stream Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. In the initial phase of operation, Wage said, Colluli would of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. 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. Business intelligence for leaders in foreign direct investment. The company is yet to secure an additional US$52 million of capital. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. 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 has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. 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. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. Geothermal an energy option for Colluli mining project in Eritrea It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. ,and the value is around 67,000.00 . It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Thank you for your comment. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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. Colluli has been largely de-risked in terms of. . It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 6. 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 water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. Proudly Researched by: Melanie Miles. 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. 6. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. I am not receiving compensation for it (other than from Seeking Alpha). 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. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. endobj As inflation falls, what can be expected from the Bank of England in the months to come? Producer of "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. The Colluli process is expected to generate a product with a purity of 94.5%. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Value: R 200 Million+. Posted by Daniel Gleeson on 21st August 2020. 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, Canada injects $75 million into BHPs Jansen potash mine, Russia raises fertilizer export quota by 500,000 tonnes, World to face potash price crunchas Brazil Potash propels Autazes project toward production, Europes largest rare earths deposit found in Sweden. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? I wrote this article myself, and it expresses my own opinions. 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 Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. body {top:0 !important;} These alternative producers require substantial lead times to generate their harvest salts for processing. countries-Eritrea - - | Reverso Context The project is the only known source of potash that allows extraction of the fertilizer in solid form. It is estimated to have about 80,000 archaeological sites. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Australias Danakali (ASX, LON:DNK) said on Thursday it was in the final stages of completing the second phase of developmentof its world-class Colluli potash project in Eritrea, Africa. The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. 1. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. Danakali (DNK) - Technical Analysis - Crux Investor Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Status: Design. Danakali to sell stake in flagship Colluli potash project in Eritrea Agnico Eagle's EPS beat expectations; guidance maintained. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. 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). For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius.

colluli potash project in eritrea 2022 2023