The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. Both are below. 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). <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> 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. 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. The deposit stretches across the border into Ethiopia. The Danakil Depression, which extends over 300km into eastern Ethiopia, hosts over 6,000 Mt of potassium-bearing salts suitable for the production of potash fertilizers. 1. This post has been syndicated from a third-party source. Colluli has significant multi-commodity potential presenting major additional value upside. "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. 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. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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 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. 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. 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. 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. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. I have no business relationship with any company whose stock is mentioned in this article. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Danakali: Why This Little-Known Potash Developer Is A Buy 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. and mag chloride to be commercialized with minimal further processing required. as being forecasted back in 2015 has been removed from the supply side (Fig. Finance > M-a. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. . Potash is the common term for fertiliser forms of the element potassium (K). 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. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. endobj "There is a supportive business environment because mining there is a very strategic industry. 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. Reverso Context-: The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. They are in deep need. The company expects to start full commercial production in mid-December 2022. 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;iDanakali to sell stake in flagship Colluli potash project in Eritrea 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. What are the best countries for cryptocurrency adoption? This geographical advantaged is unique. Asmara is a beautiful city and awash in colonial Italian architectural gems. - - | Reverso Context Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. partnerships for the SDGs. Colluli contains three potassium-bearing salts in solid form, namely. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. It has been a Unesco World Heritage Site since 2017. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The Colluli Potash Project (Project, Colluli ) is 100%. .goog-te-banner-frame {display:none !important;} 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. Send Me Updates. Additional details about the agreement are available in the following announcement >>. 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. 9. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Best. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Thank you for your comment. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. Information about Eritrea and the Horn of Africa. As inflation falls, what can be expected from the Bank of England in the months to come? 3). MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). .goog-te-menu-value:hover {text-decoration:none !important;} and then onto production in 2022, Danakali said. providing 10,000 direct and indirect local jobs. 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 above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Potash historical demand trends by region, from this source. Profit was boosted by higher metal grades and prices. The Colluli process is expected to generate a product with a purity of 94.5%. The stock seems to be agitating for a breakout in recent weeks (Fig. Morgan Leighton. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Construction nears at Colluli potash project following Eritrea ministry 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. All land is considered state-owned and property rights are non-existent. 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. US Level 1 ADR . 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). 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. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? 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. I think you should research about th e author. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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 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. 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). body {top:0 !important;} In some cases, depending on the ambient conditions, this process can take over two years. 10. 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. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. There are 70 Subscribers monitoring this project. Our 3 Top Picks. Colluli is positioned very close to vital potash markets. Mining in Eritrea: could a new potash project spur sustainable growth? 11. 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. Fig. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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 Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Colluli has been largely de-risked in terms of. I wrote this article myself, and it expresses my own opinions. 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. 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 Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Please disable your ad-blocker and refresh. These include: No poverty, zero hunger, quality 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. education, gender equality, clean water and sanitation, sustainable economic 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. 5). The front-end engineering design (FEED), expected to be Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 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. 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. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 86% of retail CFD accounts lose money. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. Image courtesy of Danakali. The SOP quality spectrum, from the same source as Fig. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. advance its sustainable development agenda, which are 13 priority Sustainable One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . Development Goals (SDGs). Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. The document estimated that Colluli would contribute 3% of There is also potential for kieserite Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. 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. Click HERE for a free trial now. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. 4). The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Fig. We have recently upgraded our technology platform. 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. 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). However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 9). 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. Fig. 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.
Aurora Solar Technologies, Articles C