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. (. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. 11). Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Potash is an important fertiliser. 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. Click HERE for a free trial now.
Danakali eyes finish line for Eritrea potash project Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). These circumstances have resulted in it becoming one of the most isolated states in the world. 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. Your email address will not be published. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. The government will benefit from the longer-term Fig. These authors includeSilver Coast Research, , among others. The stock chart of Danakali, modified from this source. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. (MOP) and gypsum, along with rock salt. Danakali Lmited is selling share to China. Shareholders are slated to . Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. 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. There is also potential for kieserite The Colluli process is expected to generate a product with a purity of 94.5%. The front-end engineering design (FEED), expected to be 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. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia.
- - | Reverso Context Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Image courtesy of Danakali. 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. The SOP quality spectrum, from the same source as Fig. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. 4 0 obj
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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name.
Colluli Potash Project - MBS Environmental The Project has unrivalled potash product versatility. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. produce more than 472,000 tonnes a year of Sulphate of Potash. 4. Profit was boosted by higher metal grades and prices. 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. endobj
It assesses a wide range of econometric data and includes findings . We have recently upgraded our technology platform. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. Select LanguageChinese (Simplified)EnglishGerman
It also has access to solar, wind and geothermal energy systems the East African rift. A port development at Anfile Bay could assist in unlocking this potential. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');}
Potash historical demand trends by region, from this source. In the sprawling mining sector, potash mining is unique in that potash mines typically last decades to even centuries, thus forcing the miners to deploy capital for the long-term return, and that transportation of bulk-tonnage potash tends to lead to regional monopolies. Thank you for your comment. Our people is poor continue!!!! Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Value: R 200 Million+. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. The front-end engineering and design (FEED) study for the project was completed in January 2018. Status: Design. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. SOP in developing regions where the highest rates of population growth are expected, from. To open fire on your own disabled [people] is pretty appalling.". It thus follows we should keep an eye on emerging potash producers. 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. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! Proudly Researched by: Melanie Miles. The agreement can be further extended by three years if mutually agreed upon. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig.
Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business Agnico Eagle's EPS beat expectations; guidance maintained. The project is the only known source of potash that allows extraction of the fertilizer in solid form. I am not receiving compensation for it (other than from Seeking Alpha). 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.Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders.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 considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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).
M&A: Mining Finance | Mining Journal 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. Posted by Daniel Gleeson on 21st August 2020. 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. The stock seems to be agitating for a breakout in recent weeks (Fig. Notify me of follow-up comments by email. 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. 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. 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. This project has been viewed 588 times.
GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. 1 0 obj
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. I have no business relationship with any company whose stock is mentioned in this article. What are my chances of getting my money back? 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. Standard, granular and soluble products can be produced for distribution to the market. 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. 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;i
PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. I think you should research about th e author. This geographical advantaged is unique. Flour was awarded the FEED contract for the Colluli potash project in January 2017. Colluli is only 75km from the Red Sea coast, 87km from a port planned at the Anfile Bay, and 230km from the existing Port of Massawa, making it the SOP deposit closest to a coastline and giving it an advantage over competing projects in neighboring Ethiopia, such as the Yara Dallol project of Yara International ASA (. The company is yet to secure an additional US$52 million of capital. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Some people have been in national conscription for more than 20 years. Table 1. 86% of retail CFD accounts lose money. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Fig. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien
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. 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. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. The document estimated that Colluli would contribute 3% of 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. Reverso Context-: Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. and then onto production in 2022, Danakali said. View the original article here. Simplified process flow for the production of SOP from the Colluli resource, from this source. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. The best energy and mining stock ideas with multibagger potential. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. 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. (. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Construction nears at Colluli potash project following Eritrea ministry Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. providing 10,000 direct and indirect local jobs. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . In the initial phase of operation, Wage said, Colluli would 6. Reminders. 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. Colluli has significant multi-commodity potential presenting major additional value upside. 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.
Fig. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. They have significant experience in executing projects of the scale and quality required for the Colluli project. 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. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. 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. Required fields are marked *. Eritrea is bordered by Sudan in the west, Ethiopia in the south and Djibouti in the south-east, and it has a 1,150km coastline along the Red Sea. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. 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. 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. If you have an ad-blocker enabled you may be blocked from proceeding. 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). With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. 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. 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. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. 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). 6. 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. 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. This long-lasting tension has led to Eritrea's militarisation. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . Fig. 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. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. RA, listed . The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. Fig. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. <>
The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser.
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. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;}
The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. and mag chloride to be commercialized with minimal further processing required. Danakali (DNK) - Technical Analysis. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. It has been a Unesco World Heritage Site since 2017. Please disable your ad-blocker and refresh. Colluli Potash Project, Danakil - Mining Technology 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. 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. endobj
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). All land is considered state-owned and property rights are non-existent. 3. 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. 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. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. advance its sustainable development agenda, which are 13 priority Sustainable In 2023, Botswana expects diamond output to decline by 1%. 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. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash 4. growth and decent work, industry, innovation and infrastructure, reduced However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 03 October 2022. 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. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Both are below. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company .