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. Has access to the Ethiopian side of the deposit been guaranteed? Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Colluli Potash Project, Eritrea. Reverso Context-: Danakali explored the use of filtered seawater at Colluli. They have significant experience in executing projects of the scale and quality required for the Colluli project.
Colluli - Danakali Limited Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. We use them to give you the best experience. 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.
Danakali to cash out of Colluli - Mining Journal Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. It assesses a wide range of econometric data and includes findings . And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time.
/ Danakali: Colluli Potash Mining Project Eritrea 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals.
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Analysis of the Potential Contributions of Colluli Potash Project to
(. 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. "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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 6. 9. 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. Your email address will not be published. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 3 0 obj
US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . 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. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. Looking for a helping hand in the market?
Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business as being forecasted back in 2015 has been removed from the supply side (Fig. I am not receiving compensation for it (other than from Seeking Alpha). 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 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 estimated at US$73/t. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. In 2023, Botswana expects diamond output to decline by 1%. 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. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. region, chief executive Niels Wagetold MINING.COM last year. 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. #goog-gt-tt {display:none !important;}
The FEED results and the recent completion of test work and additional verification provide a higher level of financial certainty to project financiers, further de-risking the investment proposition. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Colluli has been largely de-risked in terms of. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. Click HERE for a free trial now. endobj
Eritrea: potash and the pariah state - Investment Monitor The Colluli process is expected to generate a product with a purity of 94.5%. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 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.
Danakali Limited selling stake in Colluli SOP project in east Africa to Required fields are marked *. Best. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. 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. Artists impression of the plant at the Colluli project.
Danakali to sell stake in flagship Colluli potash project in Eritrea Value: R 200 Million+. In August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. Eritrea was, until 2018, on the UNs sanctions list. 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. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 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. The front-end engineering and design (FEED) study for the project was completed in January 2018.
Danakali to sell stake in flagship Colluli potash project in Eritrea Eritrea is bordered by Sudan in the west, Ethiopia in the south and Djibouti in the south-east, and it has a 1,150km coastline along the Red Sea. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! 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. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 4 0 obj
However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. 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. Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. Proudly Researched by: Melanie Miles.
Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a (2) live portfolios for both capital appreciation and income generation. 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. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. "There is a supportive business environment because mining there is a very strategic industry. All land is considered state-owned and property rights are non-existent. mine-life. 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. Is this happening to you frequently? The FEED economic estimates, from the same source as Fig. 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. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. He is an alone, he is DICTATORSHIP! The agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. The Colluli resource contains kainitite, sylvinite and carnallitite ores. finished in June, will take the company a step closer to the construction phase The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive.
4. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The cost curve of SOP production as of 2018, from the same source as Fig. The UN says forced labour and detention without trial are common. 11). We have recently upgraded our technology platform. 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. The stock seems to be agitating for a breakout in recent weeks (Fig. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. Shallowest known evaporite deposit globally.
and then onto production in 2022, Danakali said. The government will benefit from the longer-term A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. 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. 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. 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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>>
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 miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 9). Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 4. 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. The deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness.
DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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. Flour was awarded the FEED contract for the Colluli potash project in January 2017. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth.
Danakali closer to getting Eritrea potash project off the ground The location of the Colluli potash deposit, from this source. . Fig. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. It is estimated to have about 80,000 archaeological sites. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. Some abridged samples of my writings are published here, while 4X as many unabridged articles are posted without delay at TNRH, a popular Seeking Alpha Marketplace service, where you also find: (1) a stream of high-alpha actionable investment ideas. 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. 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. 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? If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Sadly, Eritrea looks set to remain a failed state as long as he is in office. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 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). countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. 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. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The asset has the potential to produce other fertilizer In the long run, potash consumption is expected to continue to grow as a result of population expansion. This post has been syndicated from a third-party source. Potash is an important fertiliser. Notify me of follow-up comments by email. 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. It describes Eritrea as "a dictatorship in which the media has no rights". The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. Image courtesy of Danakali. 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. 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. Standard, granular and soluble products can be produced for distribution to the market. (5) a community of investors to bounce off ideas and share information with. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The report also identified how the mine could help Eritrea Only 1% of the population has access to the internet, according to the World Bank. partnerships for the SDGs. The Project has unrivalled potash product versatility. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. keyValue[2].split('/')[2] : null;}
The JORC-2012 compliant mineral resource estimate, from this source. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. 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 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.
DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien The agreement can be further extended by three years if mutually agreed upon. Colluli contains three potassium-bearing salts in solid form, namely. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million.
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function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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. 4). These alternative producers require substantial lead times to generate their harvest salts for processing. Mobile data does not exist. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source.
Colluli Potash Project, Danakil - Mining Technology Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 1 0 obj
Danakali Lmited is selling share to China. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Plus500. Development Goals (SDGs). 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. 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.. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. What are the best countries for cryptocurrency adoption?
Image courtesy of Danakali.
() // Colluli Potash Project Eritrea 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. advance its sustainable development agenda, which are 13 priority Sustainable There are many sources of potassium, including. I wrote this article myself, and it expresses my own opinions. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. Danakali to cash out of Colluli. Based on what evidence? Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. %
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/).