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 fertiliser. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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. It also has access to solar, wind and geothermal energy systems the East African rift. Fig. Shallowest known evaporite deposit globally. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien 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. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Construction nears at Colluli potash project following Eritrea ministry 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 eyes finish line for Eritrea potash project Mobile data does not exist. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. (5) a community of investors to bounce off ideas and share information with. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's Finance > M-a. 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, 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. Our 3 Top Picks. 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 to cash out of Colluli - Mining Journal 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 has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} 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. stream Danakali rates 2022 potash target unlikely as "all options - Miningmx 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. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. The development of the Colluli potash projects coincides / Danakali: Colluli Potash Mining Project Eritrea Are the rights of those working on the site ensured, or will they be slaves forced to work on the mine as National Service conscripts? Sadly, Eritrea looks set to remain a failed state as long as he is in office. Image courtesy of Danakali. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Fig. 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. Morgan Leighton. There are 70 Subscribers monitoring this project. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Mining in Eritrea: could a new potash project spur sustainable growth? With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. (2) live portfolios for both capital appreciation and income generation. Why isn't Europe investing more in recycling plastic. mine-life. 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. - - | Reverso Context 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Colluli contains three potassium-bearing salts in solid form, namely. 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 Colluli potash mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. 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 decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Fig. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. with the move towards diplomatic relations between the once feuding countries Select LanguageChinese (Simplified)EnglishGerman 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). 10. Danakali: Why This Little-Known Potash Developer Is A Buy Agnico Eagle's EPS beat expectations; guidance maintained. 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. A port development at Anfile Bay could assist in unlocking this potential. There is also potential for kieserite body {top:0 !important;} To open fire on your own disabled [people] is pretty appalling.". It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. They have significant experience in executing projects of the scale and quality required for the Colluli project. Has access to the Ethiopian side of the deposit been guaranteed? It is actually resistant to the wests oppression in the most pure sense of the term. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Looking for a helping hand in the market? 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. 86% of retail CFD accounts lose money. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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". AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. Your email address will not be published. Information about Eritrea and the Horn of Africa. 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). Fig. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. 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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Danakali looks into solar, wind to power Eritrea potash project products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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. Last Updated on: 01 December 2022. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. You are talking about the garbage written by Plaut ? The document estimated that Colluli would contribute 3% of The stock seems to be agitating for a breakout in recent weeks (Fig. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Artists impression of the plant at the Colluli project. The cost curve of SOP production as of 2018, from the same source as Fig. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. Colluli is the premier greenfield development project globally. The best energy and mining stock ideas with multibagger potential. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. endobj Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. 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. Disclosure: I am/we are long SBMSF, CMP. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. This project has been viewed 588 times. Danakali explored the use of filtered seawater at Colluli. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. "There is a supportive business environment because mining there is a very strategic industry. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. As inflation falls, what can be expected from the Bank of England in the months to come? I am not receiving compensation for it (other than from Seeking Alpha). SOP in developing regions where the highest rates of population growth are expected, from. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. The location of the Colluli potash deposit, from this source. 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){}} Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. These alternative producers require substantial lead times to generate their harvest salts for processing. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. 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. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism.