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. Shareholders are slated to . function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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 Archives - International Mining It also has access to solar, wind and geothermal energy systems the East African rift. There is also potential for kieserite Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business February 25, 2022. Thank you for your comment. I think you should research about th e author. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Standard, granular and soluble products can be produced for distribution to the market. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Status: Design. Reminders. Eritrea's potash mining takes shape but questions remain What are my chances of getting my money back? After all considerations and government taxes, Danakali said it expects to receive approximately $121m. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa The stock chart of Danakali, modified from this source. () // Colluli Potash Project Eritrea 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. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 86% of retail CFD accounts lose money. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. 6. 9). mine-life. Potash reserves among the world's largest - Economist Intelligence Unit Annual output 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. Some people have been in national conscription for more than 20 years. View the original article here. 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. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. If you have an ad-blocker enabled you may be blocked from proceeding. Danakali rates 2022 potash target unlikely as "all options - Miningmx The project will be developed in multi-modules, with Module I serving as a platform for future growth. "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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Plus500. of Eritrea and Ethiopia, which officially declared peace in July 2018. Fig. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. There are many sources of potassium, including. The asset has the potential to produce other fertilizer For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. The UN says forced labour and detention without trial are common. 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. 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. 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. Information about Eritrea and the Horn of Africa. Image courtesy of Danakali. 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. Enter your email below to receive updates on your featured companies right to your inbox. It also has access to solar, wind and geothermal energy systems the East African rift. 10). providing 10,000 direct and indirect local jobs. 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. Danakali (DNK) - Technical Analysis. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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). It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea 4. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. The report also identified how the mine could help Eritrea In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Asmara is a beautiful city and awash in colonial Italian architectural gems. 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. 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). The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. It describes Eritrea as "a dictatorship in which the media has no rights". The project has now obtained all licenses and permits within the license area and has also been granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli mining license area. Danakali explored the use of filtered seawater at Colluli. 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. 1. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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). 3 0 obj
The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. Mobile data does not exist. 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). Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Image courtesy of Danakali. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. Disclosure: I am/we are long SBMSF, CMP. Looking for a helping hand in the market? 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. Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Fig. M&A: Mining Finance | Mining Journal Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. I have no business relationship with any company whose stock is mentioned in this article. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. Across the country, an estimated two-thirds of households are impacted by food insecurity. Geothermal an energy option for Colluli mining project in Eritrea It also has access to solar, wind and geothermal energy systems - the East African rift. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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. Potash is an important fertiliser. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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. 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. 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. 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. 3. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. The project has a 200-year lifecycle and is expected to start operating in 2022. region, chief executive Niels Wagetold MINING.COM last year. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. RA, listed . I have taken a starter position and plan to build a position of meaningful size in the next couple of years. finished in June, will take the company a step closer to the construction phase <>
Producer of In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. 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. Has access to the Ethiopian side of the deposit been guaranteed? 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). 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. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. it is promising future.for our country and people .Thank God. 6. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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. 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. endobj
What Are the Best Fertilizer Stocks? The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Phase one, involving an estimated capital investment of 220m ($298m), is expected to produce 472,000 tonnes per annum (tpa) of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000tpa of SOP from year six of the project with an additional capital investment of 148m ($202m). We need a bit of money.' 9. 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. Eritrea: potash and the pariah state - Investment Monitor Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. 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. with the move towards diplomatic relations between the once feuding countries The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Whilst SOP demand is population growth story it is more of an economic growth story and the African continent is seen to be where the majority of the worlds economic growth will occur in the coming decades. Eritrea one of the least accessible countries for humanitarian organisations, Searches, Arrests, and Tension in Eritrea, Eritreas jailed journalist exhibition opens in UK Parliament, Dispute over Patriach splits Norwegian Orthodox church in two, Twenty one years after being jailed, Eritreas independent journalists are remembered in the British Parliament. Why isn't Europe investing more in recycling plastic. 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. The Project has unrivalled potash product versatility. Danakali to cash out of Colluli - Mining Journal
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