AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 7. 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. There are 70 Subscribers monitoring this project. . and mag chloride to be commercialized with minimal further processing required. 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. Reminders. Morgan Leighton. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. keyValue[2].split('/')[2] : null;} endobj 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. 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. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Potash historical demand trends by region, from this source. We use them to give you the best experience. The cost curve of SOP production as of 2018, from the same source as Fig. Fertiliser is a key component to ensure world food security in the future. It is estimated to have about 80,000 archaeological sites. Enter your email below to receive updates on your featured companies right to your inbox. We have recently upgraded our technology platform. 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). 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. Plus500. Value: R 200 Million+. ,and the value is around 67,000.00 . 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. 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. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. <> Danakali eyes finish line for Eritrea potash project DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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 project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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;iDanakali appoints Aggreko as power contractor at Colluli 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. 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. 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. Afwerki's critics accuse him of using the long-standing border dispute with Ethiopia to avoid implementing Eritreas constitution which was ratified in 1997 and for postponing the first scheduled elections (which were also due in 1997). Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. Mobile data does not exist. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. 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. 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. 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. 4. and then onto production in 2022, Danakali said. I think you should research about th e author. % I am not receiving compensation for it (other than from Seeking Alpha). Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 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. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business The project is the only known source of potash that allows extraction of the fertilizer in solid form. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Some people have been in national conscription for more than 20 years. 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. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. <> function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. it is promising future.for our country and people .Thank God. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. The Colluli project requires low upfront development costs and is highly scalable for long-life production. Colluli has significant multi-commodity potential presenting major additional value upside. %PDF-1.7 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. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. 2 0 obj The company expects to start full commercial production in mid-December 2022. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Eritrea: potash and the pariah state - Investment Monitor Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien 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. They are in deep need. The development of the Colluli potash projects coincides Thank you for your comment. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. 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. This project has been viewed 588 times. 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. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. 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. The report also identified how the mine could help Eritrea The stock seems to be agitating for a breakout in recent weeks (Fig. 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. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. To open fire on your own disabled [people] is pretty appalling.". 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. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritrea's key import/export facility. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. 86% of retail CFD accounts lose money. 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. 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. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. SOP in developing regions where the highest rates of population growth are expected, from. Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). 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. 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. 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-te-menu-value:hover {text-decoration:none !important;} He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Fig. Agnico Eagle's EPS beat expectations; guidance maintained. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. 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). Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Click HERE for a free trial now. 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. 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Danakali to sell stake in flagship Colluli potash project in Eritrea stream as being forecasted back in 2015 has been removed from the supply side (Fig. 6. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. endobj Danakali rates 2022 potash target unlikely as "all options - Miningmx The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 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. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. 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? 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. 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. Simplified process flow for the production of SOP from the Colluli resource, from this source. Best. I am not receiving compensation for it (other than from Seeking Alpha). 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. Profit was boosted by higher metal grades and prices. Potash reserves among the world's largest - Economist Intelligence Unit 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. The company expects to start full commercial production in mid-December 2022. of Eritrea and Ethiopia, which officially declared peace in July 2018. 4. EuroChem will purchase the entire SOP output of the Colluli phase one potash project under a 10-year binding off-take agreement signed in June 2018.