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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. The cost curve of SOP production as of 2018, from the same source as Fig. 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. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 1 0 obj Annual output This geographical advantaged is unique. Danakali to use filtered sea water at Colluli potash mine The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. To open fire on your own disabled [people] is pretty appalling.". M&A: Mining Finance | Mining Journal produce more than 472,000 tonnes a year of Sulphate of Potash. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. 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 project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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. Shareholders are slated to . Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. "There is a supportive business environment because mining there is a very strategic industry. 2 0 obj The SOP quality spectrum, from the same source as Fig. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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. In the initial phase of operation, Wage said, Colluli would If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. with the move towards diplomatic relations between the once feuding countries .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} 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. Business intelligence for leaders in foreign direct investment. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. (2) live portfolios for both capital appreciation and income generation. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 7. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. 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. Danakali to cash out of Colluli - Mining Journal Danakali to start developing vast potash project in Eritrea 4 0 obj The company expects to start full commercial production in mid-December 2022. 9). It thus follows we should keep an eye on emerging potash producers. advance its sustainable development agenda, which are 13 priority Sustainable I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. 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. I have no business relationship with any company whose stock is mentioned in this article. The company expects to start full commercial production in mid-December 2022. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. "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. View the original article here. 10). 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). It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. There is also potential for kieserite Eritrea's potash mining takes shape but questions remain second phase of development, as the project has a possible 200-year plus Fig. Fig. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Potash is an important fertiliser. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Simplified process flow for the production of SOP from the Colluli resource, from this source. Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. He is an alone, he is DICTATORSHIP! The shortfall of projected and actual global potash capacity, from this source. 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. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. The report also identified how the mine could help Eritrea / Danakali: Colluli Potash Mining Project Eritrea Image courtesy of Danakali. Danakali (DNK) - Technical Analysis. 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. In some cases, depending on the ambient conditions, this process can take over two years. 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. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. Morgan Leighton. it is promising future.for our country and people .Thank God. 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. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). 3. 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. 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. 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. Construction nears at Colluli potash project following Eritrea ministry Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 4. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. The location of the Colluli potash deposit, from this source. Danakali closer to getting Eritrea potash project off the ground Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. We use them to give you the best experience. Additional details about the agreement are available in the following announcement >>. body {top:0 !important;} ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. 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. Colluli Potash Project, Danakil - Mining Technology 4). Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Some people have been in national conscription for more than 20 years. World Class Potash Project In Eritrea Moves Closer To Development - Forbes Send Me Updates. endobj Status: Design. Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. Best. Profit was boosted by higher metal grades and prices. Our people is poor continue!!!! keyValue[2].split('/')[2] : null;} 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. (. "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 above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 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. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. .goog-te-menu-value:hover {text-decoration:none !important;} finished in June, will take the company a step closer to the construction phase <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. Image courtesy of Danakali. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Fig. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Standard, granular and soluble products can be produced for distribution to the market. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. 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. 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. as being forecasted back in 2015 has been removed from the supply side (Fig. It describes Eritrea as "a dictatorship in which the media has no rights". Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . A big economic change will come to eritrea, proud to be an nseritrea. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. (MOP) and gypsum, along with rock salt. 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. 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. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Phase one involving an estimated capital investment of $298m is expected to produce 472,000 tonnes (t) a year of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000t of SOP from year six of the project with an additional capital investment of $202m. 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. 6. Last Updated on: 01 December 2022. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality 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? 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. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Required fields are marked *. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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 looks into solar, wind to power Eritrea potash project Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. The company is yet to secure an additional US$52 million of capital. 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. 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){}} <> "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product.
colluli potash project in eritrea 2022