colluli potash project in eritrea 2022 colluli potash project in eritrea 2022

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. The company expects to start full commercial production in mid-December 2022. partnerships for the SDGs. it is promising future.for our country and people .Thank God. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Image courtesy of Danakali. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). SOP in developing regions where the highest rates of population growth are expected, from. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. These circumstances have resulted in it becoming one of the most isolated states in the world. 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 shortfall of projected and actual global potash capacity, from this source. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. A port development at Anfile Bay could assist in unlocking this potential. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. To open fire on your own disabled [people] is pretty appalling.". and then onto production in 2022, Danakali said. 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. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. 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. 1 0 obj 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. Finance > M-a. It also said that all vendor and contractor packages have now been received. View the original article here. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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). There are many sources of potassium, including. (. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Thank you for your comment. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. Fig. 2. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. We use them to give you the best experience. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 11). Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. produce more than 472,000 tonnes a year of Sulphate of Potash. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. The company expects to start full commercial production in mid-December 2022. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Best. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Required fields are marked *. You are talking about the garbage written by Plaut ? "There is a supportive business environment because mining there is a very strategic industry. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? In the initial phase of operation, Wage said, Colluli would 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). The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. EuroChem will purchase the entire SOP output of the Colluli phase one potash project under a 10-year binding off-take agreement signed in June 2018. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Information about Eritrea and the Horn of Africa. 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. 7. and mag chloride to be commercialized with minimal further processing required. finished in June, will take the company a step closer to the construction phase However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. education, gender equality, clean water and sanitation, sustainable economic growth and decent work, industry, innovation and infrastructure, reduced 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 (. Fig. Shallowest known evaporite deposit globally. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. February 25, 2022. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. The SOP quality spectrum, from the same source as Fig. Some people have been in national conscription for more than 20 years. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: These alternative producers require substantial lead times to generate their harvest salts for processing. 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 . Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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". Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 4 0 obj The document estimated that Colluli would contribute 3% of Please disable your ad-blocker and refresh. With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Invest in t. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. 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. Potash is the common term for fertiliser forms of the element potassium (K). 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. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . region, chief executive Niels Wagetold MINING.COM last year. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Proudly Researched by: Melanie Miles. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. 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. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. #goog-gt-tt {display:none !important;} A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. A big economic change will come to eritrea, proud to be an nseritrea. Both are below. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 3 0 obj Journalists say that getting any information out of the country is extremely difficult. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Fig. #google_translate_element2 {display:none!important;} We have recently upgraded our technology platform. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Posted by Daniel Gleeson on 21st August 2020. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). All land is considered state-owned and property rights are non-existent. (5) a community of investors to bounce off ideas and share information with. 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). US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . In 2023, Botswana expects diamond output to decline by 1%. 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. 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. The development of the Colluli potash projects coincides Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Only 1% of the population has access to the internet, according to the World Bank. 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. The location of the Colluli potash deposit, from this source. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 9). 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. 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Fig. Danakali reports that the Colluli Mining Share Company (CMSC) has appointed RA International Group as its preferred contractor for the supply of accommodation, support services and other infrastructure buildings in support of the Colluli sulphate of potash project development, in Eritrea. This geographical advantaged is unique. 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. Danakali to cash out of Colluli. At mine-gate production costs of US$149-165/t or total cash costs of US$242-258/t, Colluli can be profitable even at the current low SOP price of US$500-650/t. 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). Demand for fertiliser is driven by population and economic growth which directly translates to food demand. The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. The Project has unrivalled potash product versatility. Producer of GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Click HERE for a free trial now. The Colluli project requires low upfront development costs and is highly scalable for long-life production. Posted by Daniel Gleeson on 21st August 2020. The agreement can be further extended by three years if mutually agreed upon. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 2). He is an alone, he is DICTATORSHIP! .goog-te-banner-frame {display:none !important;} keyValue[2].split('/')[2] : null;} I wrote this article myself, and it expresses my own opinions. 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. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Annual output Under the current FEED study for Module 1 and 2, Danakali will be one of the lowest cost SOP producers and with the development of the loading facility at Anfile Bay costs will decrease further as transportation costs are reduced. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. 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. 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. It also has access to solar, wind and geothermal energy systems the East African rift. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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 a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Das wrde mich fr Eritrea sehr freuen und hoffe das es den Menschen dort zugute kommt.Ich liebe dieses Land zumal meine Tochter einen eritreischen Vater hat.. 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. 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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. 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. Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. 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. Fig. 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. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. <> Please. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. It assesses a wide range of econometric data and includes findings . 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. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Profit was boosted by higher metal grades and prices. Sadly, Eritrea looks set to remain a failed state as long as he is in office. 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. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. 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 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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). The Colluli potash project is expected to commence production in 2022. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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.