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. 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. mine-life. 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. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Fig. Image courtesy of Danakali. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. growth and decent work, industry, innovation and infrastructure, reduced 11). Select LanguageChinese (Simplified)EnglishGerman It also has access to solar, wind and geothermal energy systems the East African rift. 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 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. The government will benefit from the longer-term Table 1. 5). Only 1% of the population has access to the internet, according to the World Bank. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The JORC-2012 compliant mineral resource estimate, from this source. 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. 4). region, chief executive Niels Wagetold MINING.COM last year. 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. Shareholders are slated to . The development of the Colluli potash projects coincides 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Reverso Context-: It has been a Unesco World Heritage Site since 2017. 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. It also has access to solar, wind and geothermal energy systems - the East African rift. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 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. US Level 1 ADR . A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. 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. 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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. 3. advance its sustainable development agenda, which are 13 priority Sustainable Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. These circumstances have resulted in it becoming one of the most isolated states in the world. 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. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . The project has the world's. 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. Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). 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". Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Both are below. 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. 4. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? What are my chances of getting my money back? Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 6. There are 70 Subscribers monitoring this project. Annual output 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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> 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. 6. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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. Your email address will not be published. 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. 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). 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). Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. 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. 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. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. 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. We use them to give you the best experience. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. 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. 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. The shortfall of projected and actual global potash capacity, from this source. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Our people is poor continue!!!! 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,. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. 11. 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. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. It assesses a wide range of econometric data and includes findings . body {top:0 !important;} Extraction of the salts in solid form is a crucial positive differentiator of Colluli. I am not receiving compensation for it (other than from Seeking Alpha). The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Potash is an important fertiliser. Danakali Lmited is selling share to China. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. "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. Image courtesy of Danakali. and then onto production in 2022, Danakali said. .goog-te-banner-frame {display:none !important;} (5) a community of investors to bounce off ideas and share information with. SOP in developing regions where the highest rates of population growth are expected, from. 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. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 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. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. 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. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. 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. The border with Sudan was closed until early 2019 because relations were so bad. 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). The project is the only known source of potash that allows extraction of the fertilizer in solid form. Danakali to cash out of Colluli. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. Send Me Updates. Proudly Researched by: Melanie Miles. Additional details about the agreement are available in the following announcement >>. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. After the Second World War, it was annexed to Ethiopia. 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. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Morgan Leighton. Colluli has been largely de-risked in terms of. %PDF-1.7 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 has had a border war with Ethiopia and a clash along the border with Djibouti. The stock chart of Danakali, modified from this source. The project has a 200-year lifecycle and is expected to start operating in 2022. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. In 2023, Botswana expects diamond output to decline by 1%. ,and the value is around 67,000.00 . 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. It also has access to solar, wind and geothermal energy systems the East African rift. 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. To open fire on your own disabled [people] is pretty appalling.". The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. 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. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. keyValue[2].split('/')[2] : null;} In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 5. It also has access to solar, wind and geothermal energy systems the East African rift. as being forecasted back in 2015 has been removed from the supply side (Fig. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. "There is a supportive business environment because mining there is a very strategic industry. 03 October 2022. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. 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. Some people have been in national conscription for more than 20 years. 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). 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. This long-lasting tension has led to Eritrea's militarisation. Danakali explored the use of filtered seawater at Colluli. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. They have significant experience in executing projects of the scale and quality required for the Colluli project. 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. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. View the original article here. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Development is already underway with expected production in 2022. MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. 3). partnerships for the SDGs. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. Fig. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 6. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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 above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. The document estimated that Colluli would contribute 3% of In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea.The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. 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){}} 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. I have no business relationship with any company whose stock is mentioned in this article. 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. 3). It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. endobj Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 1. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. 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. Colluli is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. 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. I think you should research about th e author. . You are talking about the garbage written by Plaut ? 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). "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. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Click HERE for a free trial now. These alternative producers require substantial lead times to generate their harvest salts for processing. Colluli Mining Share Company secured 165m ($200m) of senior debt finance from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) in August 2019. Is this happening to you frequently? Potash historical demand trends by region, from this source. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The location of the Colluli potash deposit, from this source. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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 company is yet to secure an additional US$52 million of capital. 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. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Australias Danakali (ASX, LON:DNK) said on Thursday it was in the final stages of completing the second phase of developmentof its world-class Colluli potash project in Eritrea, Africa. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Fig. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally.