colluli potash project in eritrea 2022

In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. 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. The FEED economic estimates, from the same source as Fig. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). 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 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. 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. Danakali (DNK) - Technical Analysis - Crux Investor The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. I have no business relationship with any company whose stock is mentioned in this article. The Danakil Depression, which extends over 300km into eastern Ethiopia, hosts over 6,000 Mt of potassium-bearing salts suitable for the production of potash fertilizers. 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. There is also potential for kieserite Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). 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. 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). Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. 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 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. 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. 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. 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. and mag chloride to be commercialized with minimal further processing required. Thank you for your comment. It describes Eritrea as "a dictatorship in which the media has no rights". 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. 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). Mobile data does not exist. growth and decent work, industry, innovation and infrastructure, reduced It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Send Me Updates. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. All land is considered state-owned and property rights are non-existent. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. The UN says forced labour and detention without trial are common. I am not receiving compensation for it (other than from Seeking Alpha). It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. endobj If you have an ad-blocker enabled you may be blocked from proceeding. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. partnerships for the SDGs. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. 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. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea Danakali: Why This Little-Known Potash Developer Is A Buy 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). 3 0 obj Danakali to use filtered sea water at Colluli potash mine These authors includeSilver Coast Research, , among others. 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. 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 Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. What are my chances of getting my money back? It thus follows we should keep an eye on emerging potash producers. 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. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business Best. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Based on what evidence? In the initial phase of operation, Wage said, Colluli would 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. 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. Danakali rates 2022 potash target unlikely as "all options - Miningmx . 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". could rise to almost 944,000 tonnes if Danakali decides to go ahead with a stream Value: R 200 Million+. A big economic change will come to eritrea, proud to be an nseritrea. Looking for a helping hand in the market? This post has been syndicated from a third-party source. The company is yet to secure an additional US$52 million of capital. 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. 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. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Danakali to cash out of Colluli - Mining Journal US Level 1 ADR . 3). Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. PDF owned by For personal use only Posted by Daniel Gleeson on 21st August 2020. Artists impression of the plant at the Colluli project. It is actually resistant to the wests oppression in the most pure sense of the term. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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 Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. Construction nears at Colluli potash project following Eritrea ministry it is promising future.for our country and people .Thank God. Danakali to start developing vast potash project in Eritrea 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. 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. 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 Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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% . Proudly Researched by: Melanie Miles. 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. In 2023, Botswana expects diamond output to decline by 1%. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. Potash is the common term for fertiliser forms of the element potassium (K). There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. Click HERE for a free trial now. The SOP quality spectrum, from the same source as Fig. The Colluli Potash Project (Project, Colluli ) is 100%. Colluli - Danakali Limited If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 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. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Some people have been in national conscription for more than 20 years. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. The company expects to start full commercial production in mid-December 2022. It also has access to solar, wind and geothermal energy systems the East African rift. Plus500. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. <> endobj Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). After all considerations and government taxes, Danakali said it expects to receive approximately $121m. Potash reserves among the world's largest - Economist Intelligence Unit keyValue[2].split('/')[2] : null;} Development Goals (SDGs). 4. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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){}} Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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 mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. RA, listed . Eritrea's potash mining takes shape but questions remain The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. 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. Information about Eritrea and the Horn of Africa. The document estimated that Colluli would contribute 3% of Fertiliser is a key component to ensure world food security in the future. Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery.