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1. 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. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. The Colluli resource contains kainitite, sylvinite and carnallitite ores. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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. (MOP) and gypsum, along with rock salt. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. #goog-gt-tt {display:none !important;} Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Status: Design. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. The deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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. Notify me of follow-up comments by email. The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. and mag chloride to be commercialized with minimal further processing required. 7. 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. In the long run, potash consumption is expected to continue to grow as a result of population expansion. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. In July 2013, major producer Belaruskali broke up with former Belarusian Potash Company cartel partner Uralkali, and in a move to grab market share, signed a potash sales contract for the Chinese market at US$315/t MOP. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. The Colluli potash project is expected to commence production in 2022. 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. 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. It also has access to solar, wind and geothermal energy systems the East African rift. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. 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. 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. endobj "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. View the original article here. endobj Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Development Goals (SDGs). 5). The project is the only known source of potash that allows extraction of the fertilizer in solid form. Information about Eritrea and the Horn of Africa. The JORC-2012 compliant mineral resource estimate, from this source. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. <> 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 best energy and mining stock ideas with multibagger potential. There are 70 Subscribers monitoring this project. Select LanguageChinese (Simplified)EnglishGerman I think you should research about th e author. 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. Invest in t. The stock seems to be agitating for a breakout in recent weeks (Fig. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. 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. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. 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. 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. These include: No poverty, zero hunger, quality 10). A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. #google_translate_element2 {display:none!important;} The project is the only known source of potash that allows extraction of the fertilizer in solid form. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. The agreement can be further extended by three years if mutually agreed upon. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. They are in deep need. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. 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. 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. 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. Additional details about the agreement are available in the following announcement >>. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. The stock chart of Danakali, modified from this source. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. Potash is an important fertiliser. Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. 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. development of the project, and the expected significant boost to royalties, 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. (. Looking for a helping hand in the market? "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. The SOP quality spectrum, from the same source as Fig. These authors includeSilver Coast Research, , among others. 03 October 2022. 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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. It thus follows we should keep an eye on emerging potash producers. 3). It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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). Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. To open fire on your own disabled [people] is pretty appalling.". AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. It describes Eritrea as "a dictatorship in which the media has no rights". 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. I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. Artists impression of the plant at the Colluli project. The deposit stretches across the border into Ethiopia. Business intelligence for leaders in foreign direct investment. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 6. Is this happening to you frequently? of Eritrea and Ethiopia, which officially declared peace in July 2018. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Shareholders are slated to . 8. Potash historical demand trends by region, from this source. The location of the Colluli potash deposit, from this source. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Fertiliser is a key component to ensure world food security in the future. 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. 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. 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. 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). According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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 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. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of 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. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Danakali (DNK) - Technical Analysis. The cost curve of SOP production as of 2018, from the same source as Fig. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. taxation and exports, and from jobs and skills and economic development of the If you have an ad-blocker enabled you may be blocked from proceeding. 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 fertilizer. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Das wrde mich fr Eritrea sehr freuen und hoffe das es den Menschen dort zugute kommt.Ich liebe dieses Land zumal meine Tochter einen eritreischen Vater hat.. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Simplified process flow for the production of SOP from the Colluli resource, from this source. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Shallowest known evaporite deposit globally. Click HERE for a free trial now. (. We need a bit of money.' 1). 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. There are many sources of potassium, including. It also has access to solar, wind and geothermal energy systems the East African rift. We have recently upgraded our technology platform. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). Ok as claimed above I dure hope the dictatorship in place will be nice enough this time around to be honest and work for the sake of the people and show the truth about the budgetary issues to the public unlike what the dictatorship did on the gold mining sector.we Eritreans cannot wait to see the benefits of the potash industry on projects that will enhance peoples living standards and create a sustainable economic growth as stipulated on the government sustainable development goals and agendatime only will tell if the dictatorship will have a changing to work for the betterment of the country but not gew clicks. 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 project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. 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. 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. Producer of There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. region, chief executive Niels Wagetold MINING.COM last year. Required fields are marked *. 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 4. advance its sustainable development agenda, which are 13 priority Sustainable He is an alone, he is DICTATORSHIP! Both are below. Fig. The government will benefit from the longer-term 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. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 11). Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. stream 2. 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. The border with Sudan was closed until early 2019 because relations were so bad. 86% of retail CFD accounts lose money. 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