Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 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. Annual output 3). Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Please disable your ad-blocker and refresh. 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. 4. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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 also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. The cost curve of SOP production as of 2018, from the same source as Fig. The Colluli resource contains kainitite, sylvinite and carnallitite ores. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. There are many sources of potassium, including. 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. 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 south-east of the port of Massawa, which is Eritreas key import/export facility. Reverso Context-: The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. finished in June, will take the company a step closer to the construction phase Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Based on what evidence? 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. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 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). 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. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. Additional details about the agreement are available in the following announcement >>. We have recently upgraded our technology platform. mine-life. The shortfall of projected and actual global potash capacity, from this source. .goog-te-banner-frame {display:none !important;} These include: No poverty, zero hunger, quality 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea.The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Colluli is positioned very close to vital potash markets. It thus follows we should keep an eye on emerging potash producers. 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 stock chart of Danakali, modified from this source. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. This post has been syndicated from a third-party source. 9). The company expects to start full commercial production in mid-December 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. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. The Project has unrivalled potash product versatility. We need a bit of money.' I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/). Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. 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. 10). The FEED economic estimates, from the same source as 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. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. 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. 2 0 obj stream In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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 (. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 03 October 2022. In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. Select LanguageChinese (Simplified)EnglishGerman At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Enter your email below to receive updates on your featured companies right to your inbox. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. "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. Danakali (DNK) - Technical Analysis. education, gender equality, clean water and sanitation, sustainable economic Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. The government will benefit from the longer-term Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . The JORC-2012 compliant mineral resource estimate, from this source. 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. <> It has been a Unesco World Heritage Site since 2017. In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. Our people is poor continue!!!! Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. function GTranslateFireEvent(element,event){try{if(document.createEventObject){var evt=document.createEventObject();element.fireEvent('on'+event,evt)}else{var evt=document.createEvent('HTMLEvents');evt.initEvent(event,true,true);element.dispatchEvent(evt)}}catch(e){}} There is also potential for kieserite The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). 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. US Level 1 ADR . 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. #google_translate_element2 {display:none!important;} Disclosure: I am/we are long SBMSF, CMP. 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. development of the project, and the expected significant boost to royalties, 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. 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. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). Why isn't Europe investing more in recycling plastic. countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. Colluli Potash Project, Eritrea. A big economic change will come to eritrea, proud to be an nseritrea. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. 6. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. 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. 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. You are talking about the garbage written by Plaut ? In 2023, Botswana expects diamond output to decline by 1%. 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. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. it is promising future.for our country and people .Thank God. ,and the value is around 67,000.00 . Colluli is the premier greenfield development project globally. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Reminders. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Image courtesy of Danakali. 6. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . Status: Design. 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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. 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. 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 contains three potassium-bearing salts in solid form, namely. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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. and then onto production in 2022, Danakali said. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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. 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.