colluli potash project in eritrea 2022

The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Colluli is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. 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. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . 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. Colluli has significant multi-commodity potential presenting major additional value upside. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Our people is poor continue!!!! Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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. 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). Table 1. The Colluli process is expected to generate a product with a purity of 94.5%. A big economic change will come to eritrea, proud to be an nseritrea. Is this happening to you frequently? Select LanguageChinese (Simplified)EnglishGerman Demand for fertiliser is driven by population and economic growth which directly translates to food demand. (MOP) and gypsum, along with rock salt. Only 1% of the population has access to the internet, according to the World Bank. produce more than 472,000 tonnes a year of Sulphate of Potash. 6. 1. 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. Click HERE for a free trial now. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Please disable your ad-blocker and refresh. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Many Eritreans hoped that the peace deal with Ethiopia would create economic opportunities for the country, but there is little sign of that happening yet. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. A port development at Anfile Bay could assist in unlocking this potential. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Reverso Context-: The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Fertiliser is a key component to ensure world food security in the future. 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. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. finished in June, will take the company a step closer to the construction phase RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. 8. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. 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. 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. 03 October 2022. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. 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. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. This post has been syndicated from a third-party source. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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 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 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. 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/). <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. 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. 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,. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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. Colluli is positioned very close to vital potash markets. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. There are many sources of potassium, including. The stock seems to be agitating for a breakout in recent weeks (Fig. 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. 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. #google_translate_element2 {display:none!important;} 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. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 5). The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. and mag chloride to be commercialized with minimal further processing required. The project will be developed in multi-modules, with Module I serving as a platform for future growth. Proudly Researched by: Melanie Miles. 4 0 obj 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. The UN says forced labour and detention without trial are common. SOP in developing regions where the highest rates of population growth are expected, from. 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. 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 report also identified how the mine could help Eritrea We need a bit of money.' The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. .goog-te-banner-frame {display:none !important;} It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. The development of the Colluli potash projects coincides "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. Mobile data does not exist. with the move towards diplomatic relations between the once feuding countries ,and the value is around 67,000.00 . Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. and then onto production in 2022, Danakali said. Fig. I am not receiving compensation for it (other than from Seeking Alpha). These include: No poverty, zero hunger, quality 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. 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 JORC-2012 compliant mineral resource estimate, from this source. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. 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. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. 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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Image courtesy of Danakali. 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. 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. Standard, granular and soluble products can be produced for distribution to the market. We have recently upgraded our technology platform. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Plus500. 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. These alternative producers require substantial lead times to generate their harvest salts for processing. 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. Why isn't Europe investing more in recycling plastic. 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. Required fields are marked *. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritrea was, until 2018, on the UNs sanctions list. 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). 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. %PDF-1.7 It also has access to solar, wind and geothermal energy systems the East African rift. I have no business relationship with any company whose stock is mentioned in this article. 6. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Shallowest known evaporite deposit globally. 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){}} The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. It also has access to solar, wind and geothermal energy systems the East African rift. 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. The deposit stretches across the border into Ethiopia. body {top:0 !important;} All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". 3. Value: R 200 Million+. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. 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. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Simplified process flow for the production of SOP from the Colluli resource, from this source. They are in deep need. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} Posted by Daniel Gleeson on 21st August 2020. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. 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. 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. second phase of development, as the project has a possible 200-year plus Development Goals (SDGs). 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). A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Annual output The location of the Colluli potash deposit, from this source. 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. 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 (. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. 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. 9. Colluli Potash Project, Eritrea. The front-end engineering design (FEED), expected to be It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. This long-lasting tension has led to Eritrea's militarisation. Morgan Leighton. Profit was boosted by higher metal grades and prices. The company expects to start full commercial production in mid-December 2022. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). The asset has the potential to produce other fertilizer 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. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). What Are the Best Fertilizer Stocks? The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. View the original article here. 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. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Fig. As inflation falls, what can be expected from the Bank of England in the months to come? Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. % I have no business relationship with any company whose stock is mentioned in this article. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite.



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