6. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at In some cases, depending on the ambient conditions, this process can take over two years. Many Eritreans hoped that the peace deal with Ethiopia would create economic opportunities for the country, but there is little sign of that happening yet. The project has the world's. 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. 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 plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Table 1. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. as being forecasted back in 2015 has been removed from the supply side (Fig. 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. 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. 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. Why isn't Europe investing more in recycling plastic. 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. Required fields are marked *. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. The Colluli Potash Project (Project, Colluli ) is 100%. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. In 2023, Botswana expects diamond output to decline by 1%. The asset has the potential to produce other fertilizer 03 October 2022. Agnico Eagle's EPS beat expectations; guidance maintained. 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. All land is considered state-owned and property rights are non-existent. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net 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. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. I wrote this article myself, and it expresses my own opinions. education, gender equality, clean water and sanitation, sustainable economic 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The Project has unrivalled potash product versatility. 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 development of the Colluli potash projects coincides The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. Is this happening to you frequently? A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. It has had a border war with Ethiopia and a clash along the border with Djibouti. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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). 3). The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. 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. Potash historical demand trends by region, from this source. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. 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). The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. It also has access to solar, wind and geothermal energy systems the East African rift. These include: No poverty, zero hunger, quality The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. and mag chloride to be commercialized with minimal further processing required. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. 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. 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. 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. 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. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. .goog-te-menu-value:hover {text-decoration:none !important;} Fig. 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. 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. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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. (. 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. 11. To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. partnerships for the SDGs. This project has been viewed 588 times. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. The Colluli process is expected to generate a product with a purity of 94.5%. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). The Colluli resource contains kainitite, sylvinite and carnallitite ores. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. 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. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. finished in June, will take the company a step closer to the construction phase We need a bit of money.' Fig. 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). 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. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. Notify me of follow-up comments by email. The best energy and mining stock ideas with multibagger potential. 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. It is estimated to have about 80,000 archaeological sites. Invest in t. (5) a community of investors to bounce off ideas and share information with. I think you should research about th e author. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Potash is the common term for fertiliser forms of the element potassium (K). It is actually resistant to the wests oppression in the most pure sense of the term. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Colluli is located in the Danakil Depression . Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. 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. 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. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. %PDF-1.7 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. "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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Shareholders are slated to . Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a This long-lasting tension has led to Eritrea's militarisation. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. It thus follows we should keep an eye on emerging potash producers. According to Reporters Without Borders, only North Korea has less press freedom. Additional details about the agreement are available in the following announcement >>. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Artists impression of the plant at the Colluli project. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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. A port development at Anfile Bay could assist in unlocking this potential. 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. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. 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. Status: Design. In the long run, potash consumption is expected to continue to grow as a result of population expansion. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. 8. Colluli is positioned very close to vital potash markets. 2). The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. By. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Posted by Daniel Gleeson on 21st August 2020. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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). The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. of Eritrea and Ethiopia, which officially declared peace in July 2018. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 3 0 obj On December 3, 2019, Africa Finance Corporation also agreed to make a US$50 million equity investment in two tranches at A$0.60 per Danakali share.