colluli potash project in eritrea 2022 colluli potash project in eritrea 2022

It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. Fig. A big economic change will come to eritrea, proud to be an nseritrea. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. We use them to give you the best experience. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. It has been a Unesco World Heritage Site since 2017. 10). It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Eritrea was, until 2018, on the UNs sanctions list. 3). 1. 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. Reverso Context-: Development Goals (SDGs). "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . Your email address will not be published. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . Due to this change if you are seeing this message for the first time please make sure you reset your password using the Forgot your password Link. 10. A port development at Anfile Bay could assist in unlocking this potential. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 1). Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 3. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . 5. 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. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. There is also potential for kieserite Is this happening to you frequently? Fig. To open fire on your own disabled [people] is pretty appalling.". 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. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. The best energy and mining stock ideas with multibagger potential. 11). 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Danakali explored the use of filtered seawater at Colluli. 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. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Business intelligence for leaders in foreign direct investment. 6. It is estimated to have about 80,000 archaeological sites. 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. MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . I am not receiving compensation for it (other than from Seeking Alpha). Potash is the common term for fertiliser forms of the element potassium (K). 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. Agnico Eagle's EPS beat expectations; guidance maintained. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. 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. According to Reporters Without Borders, only North Korea has less press freedom. 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 also has access to solar, wind and geothermal energy systems the East African rift. 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. It describes Eritrea as "a dictatorship in which the media has no rights". 11. 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. 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 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. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Please disable your ad-blocker and refresh. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. . I have no business relationship with any company whose stock is mentioned in this article. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. 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. <> The front-end engineering and design (FEED) study for the project was completed in January 2018. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. Select LanguageChinese (Simplified)EnglishGerman The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". growth and decent work, industry, innovation and infrastructure, reduced Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. These circumstances have resulted in it becoming one of the most isolated states in the world. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 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. The agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. 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). Eritrea has one of the most erratic economies in the world, partly due to chronic drought and highly variable agricultural output: its GDP surged by 31% in 2014 before plummeting by -20.6% in 2015. Colluli Potash Project, Eritrea. 6. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy and then onto production in 2022, Danakali said. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The company expects to start full commercial production in mid-December 2022. inequalities, climate action, peace, justice and strong institutions and It also has access to solar, wind and geothermal energy systems the East African rift. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. After the Second World War, it was annexed to Ethiopia. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australia's Danakali and Eritrean National Mining Corporation (ENAMCO). 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. Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. 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. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO).