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 fertiliser. 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). Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. This long-lasting tension has led to Eritrea's militarisation. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. The development of the Colluli potash projects coincides (2) live portfolios for both capital appreciation and income generation. it is promising future.for our country and people .Thank God. 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. 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. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Reverso Context-: The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. The agreement can be further extended by three years if mutually agreed upon. 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. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. Colluli Potash Project, Danakil - Mining Technology Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The SOP quality spectrum, from the same source as Fig. 4. The Colluli potash mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. There is also potential for kieserite .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} What are my chances of getting my money back? One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. and then onto production in 2022, Danakali said. <> 8. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Colluli - Danakali Limited In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). There are 70 Subscribers monitoring this project. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Shallowest known evaporite deposit globally. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Additional details about the agreement are available in the following announcement >>. 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. taxation and exports, and from jobs and skills and economic development of the 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. 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 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 located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net 4. (5) a community of investors to bounce off ideas and share information with. 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. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Danakali eyes finish line for Eritrea potash project Potash historical demand trends by region, from this source. region, chief executive Niels Wagetold MINING.COM last year. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. I have no business relationship with any company whose stock is mentioned in this article. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. 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. Colluli is positioned very close to vital potash markets. "There is a supportive business environment because mining there is a very strategic industry. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. It also has access to solar, wind and geothermal energy systems the East African rift. 3). phosphorus mines in usa In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. It is actually resistant to the wests oppression in the most pure sense of the term. Has access to the Ethiopian side of the deposit been guaranteed? M&A: Mining Finance | Mining Journal 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. Your email address will not be published. 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. 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. 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 decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Table 1. 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. These circumstances have resulted in it becoming one of the most isolated states in the world. After the Second World War, it was annexed to Ethiopia. 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 (DNK) - Technical Analysis. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. Colluli contains three potassium-bearing salts in solid form, namely. 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. PDF owned by For personal use only Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. Enter your email below to receive updates on your featured companies right to your inbox. 4). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. At mine-gate production costs of US$149-165/t or total cash costs of US$242-258/t, Colluli can be profitable even at the current low SOP price of US$500-650/t. 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 government monitors telephone and internet traffic and runs an extensive domestic surveillance system. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . Posted by Daniel Gleeson on 21st August 2020. 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). Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. US Level 1 ADR . 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. with the move towards diplomatic relations between the once feuding countries 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. Profit was boosted by higher metal grades and prices. 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). 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. In some cases, depending on the ambient conditions, this process can take over two years. .goog-te-menu-value:hover {text-decoration:none !important;} 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. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! 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. 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 Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. 6. 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). 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. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. The Colluli Potash Project (Project, Colluli ) is 100%. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 1. Standard, granular and soluble products can be produced for distribution to the market. 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. They are in deep need. What Are the Best Fertilizer Stocks? Disclosure: I am/we are long SBMSF, CMP. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. "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.
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colluli potash project in eritrea 2022