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 (. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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 company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Image courtesy of Danakali. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
The stock seems to be agitating for a breakout in recent weeks (Fig. Colluli has significant multi-commodity potential presenting major additional value upside. The company is yet to secure an additional US$52 million of capital. 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. Adjusted net income of $0.52 beat the consensus estimate of $0.43. it is promising future.for our country and people .Thank God. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! 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. 6. 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. The SOP quality spectrum, from the same source as Fig. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. The JORC-2012 compliant mineral resource estimate, from this source. Mobile data does not exist. 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. The report also identified how the mine could help Eritrea Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). They are in deep need. 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". Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". RA, listed . Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. A big economic change will come to eritrea, proud to be an nseritrea. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. The company expects to start full commercial production in mid-December 2022. 4. growth and decent work, industry, innovation and infrastructure, reduced Send Me Updates. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. <>
region, chief executive Niels Wagetold MINING.COM last year. It describes Eritrea as "a dictatorship in which the media has no rights". In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. (5) a community of investors to bounce off ideas and share information with. 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. Morgan Leighton. Fig. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. The agreement can be further extended by three years if mutually agreed upon. The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. providing 10,000 direct and indirect local jobs. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Fertiliser is a key component to ensure world food security in the future. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 5. 11. It also has access to solar, wind and geothermal energy systems the East African rift. 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.
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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. mine-life. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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/). Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. 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. 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. Fig. Status: Design. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 3). As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. According to Reporters Without Borders, only North Korea has less press freedom. Invest in t. 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.
In some cases, depending on the ambient conditions, this process can take over two years. Best. The Colluli Potash Project (Project, Colluli ) is 100%. 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 plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. 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). with the move towards diplomatic relations between the once feuding countries After the Second World War, it was annexed to Ethiopia. 2 0 obj
Journalists say that getting any information out of the country is extremely difficult. Information about Eritrea and the Horn of Africa. Standard, granular and soluble products can be produced for distribution to the market. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Profit was boosted by higher metal grades and prices. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. 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. 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. 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). The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. You are talking about the garbage written by Plaut ? 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. February 25, 2022. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. 3. taxation and exports, and from jobs and skills and economic development of the Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. 4. What are my chances of getting my money back? 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. I am not receiving compensation for it (other than from Seeking Alpha). Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. second phase of development, as the project has a possible 200-year plus Asmara is a beautiful city and awash in colonial Italian architectural gems. 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. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. 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. 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. The shortfall of projected and actual global potash capacity, from this source. It has had a border war with Ethiopia and a clash along the border with Djibouti. The UN says forced labour and detention without trial are common. 5). 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. Agnico Eagle's EPS beat expectations; guidance maintained. 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. Plus500. The development of the Colluli potash projects coincides <>
The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Image courtesy of Danakali. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 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 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. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . 10). Fig. The asset has the potential to produce other fertilizer It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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. advance its sustainable development agenda, which are 13 priority Sustainable In 2023, Botswana expects diamond output to decline by 1%. 4). It has been a Unesco World Heritage Site since 2017. It assesses a wide range of econometric data and includes findings . Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. The government will benefit from the longer-term "There is a supportive business environment because mining there is a very strategic industry. 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. 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.