Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. #goog-gt-tt {display:none !important;}
The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The project has the world's. providing 10,000 direct and indirect local jobs. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). 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. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. Notify me of follow-up comments by email. I have no business relationship with any company whose stock is mentioned in this article. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. 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. () // Colluli Potash Project Eritrea The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. The JORC-2012 compliant mineral resource estimate, from this source. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. 3. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. It thus follows we should keep an eye on emerging potash producers. I wrote this article myself, and it expresses my own opinions. 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. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. 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. RA International to set up camp at Colluli sulphate of potash mine There are many sources of potassium, including. Invest in t. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Fig. 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. The front-end engineering design (FEED), expected to be The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. 7. These include: No poverty, zero hunger, quality The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 2). Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 5). 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. The cost curve of SOP production as of 2018, from the same source as Fig. 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. phosphorus mines in usa 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. 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. Sadly, Eritrea looks set to remain a failed state as long as he is in office. 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. 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 country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Colluli Potash Project, Eritrea. 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, 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. Eritrea's potash mining takes shape but questions remain 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. 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. It also has access to solar, wind and geothermal energy systems - the East African rift. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. 11. The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. / Danakali: Colluli Potash Mining Project Eritrea The company is yet to secure an additional US$52 million of capital. 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. Standard, granular and soluble products can be produced for distribution to the market. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. Our 3 Top Picks. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: A port development at Anfile Bay could assist in unlocking this potential. Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Artists impression of the plant at the Colluli project. - - | Reverso Context (5) a community of investors to bounce off ideas and share information with. Shareholders are slated to . 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. The project will be developed in multi-modules, with Module I serving as a platform for future growth. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>>
Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. It is estimated to have about 80,000 archaeological sites. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 8. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Annual output Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 2. The FEED economic estimates, from the same source as Fig. As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). Danakali (DNK) - Technical Analysis - Crux Investor 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 has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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 potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Value: R 200 Million+. Eritrea was, until 2018, on the UNs sanctions list. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. Our people is poor continue!!!! 1. Fig. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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). 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. The shortfall of projected and actual global potash capacity, from this source. As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. 6. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Status: Design. "There is a supportive business environment because mining there is a very strategic industry. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. These circumstances have resulted in it becoming one of the most isolated states in the world. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. The appointment of RA International is testament to sound execution of our growth strategy, highlighting continued new business momentum with another significant award in the mining sector., Your email address will not be published. Colluli is positioned very close to vital potash markets. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Fig. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). 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. 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. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Required fields are marked *. Danakali to sell stake in flagship Colluli potash project in Eritrea Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Only 1% of the population has access to the internet, according to the World Bank. Last Updated on: 01 December 2022. Danakali to start developing vast potash project in Eritrea The development of the Colluli potash projects coincides February 25, 2022. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Across the country, an estimated two-thirds of households are impacted by food insecurity. It assesses a wide range of econometric data and includes findings . Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/).