Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. 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). It has had a border war with Ethiopia and a clash along the border with Djibouti. Danakali to sell stake in flagship Colluli potash project in Eritrea The project is the only known source of potash that allows extraction of the fertilizer in solid form. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Invest in t. 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). The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. RA International to set up camp at Colluli sulphate of potash mine DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. Required fields are marked *. After the Second World War, it was annexed to Ethiopia. Notify me of follow-up comments by email. The best energy and mining stock ideas with multibagger potential. It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. body {top:0 !important;}
The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 7. 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. 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. Eritrea's potash mining takes shape but questions remain Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. What are my chances of getting my money back? This post has been syndicated from a third-party source. Colluli has significant multi-commodity potential presenting major additional value upside. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. Eritrea: potash and the pariah state - Investment Monitor Fig. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
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. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');}
It also has access to solar, wind and geothermal energy systems the East African rift. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. 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. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. 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. 4 0 obj
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. I am not receiving compensation for it (other than from Seeking Alpha). The project has the world's. In 2023, Botswana expects diamond output to decline by 1%. Agnico Eagle's EPS beat expectations; guidance maintained. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. The Colluli project lies in an area that saw detailed geological and geochemical work by USAID and US Geological Survey with the Eritrean Ministry of Mines and Energy. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. (. Reverso Context-: Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. and mag chloride to be commercialized with minimal further processing required. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Danakali (DNK) - Technical Analysis - Crux Investor 10. SOP in developing regions where the highest rates of population growth are expected, from. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Australia's Danakali (ASX: DNK) is selling its 50% stake in the Colluli potash project in Eritrea, Africa, almost 13 years after partnering with the Eritrean National Mining Corporation. The 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). Danakali eyes finish line for Eritrea potash project Colluli is the premier greenfield development project globally. 2. 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. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;iAnalysis of the Potential Contributions of Colluli Potash Project to Shallowest known evaporite deposit globally. 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. 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. 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. (. . of Eritrea and Ethiopia, which officially declared peace in July 2018. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. 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? Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? We are confident in RA Internationals capabilities to deliver a high-quality product and service.. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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 . "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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. We need a bit of money.' There is also potential for kieserite Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: and then onto production in 2022, Danakali said. Business intelligence for leaders in foreign direct investment. This project has been viewed 588 times. inequalities, climate action, peace, justice and strong institutions and They have significant experience in executing projects of the scale and quality required for the Colluli project. Danakali explored the use of filtered seawater at Colluli. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 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. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. 3 0 obj
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. 3). Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. 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). 11). Image courtesy of Danakali. () // Colluli Potash Project Eritrea RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. Potash reserves among the world's largest - Economist Intelligence Unit The document estimated that Colluli would contribute 3% of It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. Fertiliser is a key component to ensure world food security in the future. Annual output Image courtesy of Danakali. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Your email address will not be published. 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. The deposit stretches across the border into Ethiopia. Please. Fig. Here Are 10 Other Analyst Forecasts For Tuesday, Berenberg Bank Sticks to Their Buy Rating for Nutrien (NTR), Registration on or use of this site constitutes acceptance of our. As inflation falls, what can be expected from the Bank of England in the months to come? education, gender equality, clean water and sanitation, sustainable economic What are the best countries for cryptocurrency adoption? 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. The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. Shareholders are slated to . The Colluli Potash Project (Project, Colluli ) is 100%. Colluli has been largely de-risked in terms of. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. Danakali to cash out of Colluli - Mining Journal Only 1% of the population has access to the internet, according to the World Bank. (5) a community of investors to bounce off ideas and share information with. Status: Design. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. 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. 5. mine-life. Journalists say that getting any information out of the country is extremely difficult.
The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive.
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