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

To open fire on your own disabled [people] is pretty appalling.". The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. They are in deep need. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. 6. 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. 03 October 2022. Disclosure: I am/we are long SBMSF, CMP. 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. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. In 2023, Botswana expects diamond output to decline by 1%. Annual output 86% of retail CFD accounts lose money. Plus500. It also has access to solar, wind and geothermal energy systems the East African rift. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). The project is the only known source of potash that allows extraction of the fertilizer in solid form. Has access to the Ethiopian side of the deposit been guaranteed? Development is already underway with expected production in 2022. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. 5). <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> 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). The company expects to start full commercial production in mid-December 2022. It describes Eritrea as "a dictatorship in which the media has no rights". 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 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. 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. 1). Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. The location of the Colluli potash deposit, from this source. It also has access to solar, wind and geothermal energy systems the East African rift. Fig. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. By. 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Best. 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. 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. It is a member of the African Union, the UN and the Intergovernmental Authority on Development which deals with issues around drought and desertification in the Horn of Africa but it is the only African country (out of 55) not to sign up to the African Continental Free Trade Area, the huge free trade area that went live on 1 January 2021. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Fig. The Colluli Potash Project (Project, Colluli ) is 100%. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. 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. 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. You are talking about the garbage written by Plaut ? 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;i200 years of mine life. In 2023, Botswana expects diamond output to decline by 1%. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. The appointment of RA International is testament to sound execution of our growth strategy, highlighting continued new business momentum with another significant award in the mining sector., Your email address will not be published. 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. Invest in t. The agreement can be further extended by three years if mutually agreed upon. 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 JORC-2012 compliant mineral resource estimate, from this source. Eritrea was, until 2018, on the UNs sanctions list. The Colluli resource contains kainitite, sylvinite and carnallitite ores. There are many sources of potassium, including. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. There is also potential for kieserite A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. In the long run, potash consumption is expected to continue to grow as a result of population expansion. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} The project is the only known source of potash that allows extraction of the fertilizer in solid form. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. Posted by Daniel Gleeson on 21st August 2020. Profit was boosted by higher metal grades and prices. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. RA, listed . Enter your email below to receive updates on your featured companies right to your inbox. 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. Fig. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . 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. The front-end engineering and design (FEED) study for the project was completed in January 2018. 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, 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. 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). finished in June, will take the company a step closer to the construction phase 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). 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. 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. The stock chart of Danakali, modified from this source. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. 10. These authors includeSilver Coast Research, , among others. Colluli is located in the Danakil Depression . Extraction of the salts in solid form is a crucial positive differentiator of Colluli. 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). Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. We need a bit of money.' as being forecasted back in 2015 has been removed from the supply side (Fig. providing 10,000 direct and indirect local jobs. Standard, granular and soluble products can be produced for distribution to the market. Fig. Asmara is a beautiful city and awash in colonial Italian architectural gems. Status: Design. 4. 7. It thus follows we should keep an eye on emerging potash producers. The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. it is promising future.for our country and people .Thank God. 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". The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). This post has been syndicated from a third-party source. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. 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. This geographical advantaged is unique. As inflation falls, what can be expected from the Bank of England in the months to come? In the initial phase of operation, Wage said, Colluli would Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. produce more than 472,000 tonnes a year of Sulphate of Potash. Looking for a helping hand in the market? 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. The report also identified how the mine could help Eritrea The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 4 0 obj 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. 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. 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. and mag chloride to be commercialized with minimal further processing required. #google_translate_element2 {display:none!important;} of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. 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. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. second phase of development, as the project has a possible 200-year plus Journalists say that getting any information out of the country is extremely difficult. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Fig. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. Simplified process flow for the production of SOP from the Colluli resource, from this source. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). Select LanguageChinese (Simplified)EnglishGerman (2) live portfolios for both capital appreciation and income generation. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Thank you for your comment. Danakali to cash out of Colluli. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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% . It is estimated to have about 80,000 archaeological sites. It also has access to solar, wind and geothermal energy systems - the East African rift. "There is a supportive business environment because mining there is a very strategic industry. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents.