Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . Das wrde mich fr Eritrea sehr freuen und hoffe das es den Menschen dort zugute kommt.Ich liebe dieses Land zumal meine Tochter einen eritreischen Vater hat.. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. There is also potential for kieserite In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. 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). 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. I have no business relationship with any company whose stock is mentioned in this article.
M&A: Mining Finance | Mining Journal 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. 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. Mobile data does not exist. Posted by Daniel Gleeson on 21st August 2020.
10). Fig. I based my assertion of Eritrea being ONE of the most oppressive regimes on a series of reports by human rights advocates such as Human Rights Watch (https://www.hrw.org/world-report/2021/country-chapters/eritrea) as well as sites such as D+C (https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes).
Danakali to sell stake in flagship Colluli potash project in Eritrea Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Fig. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Danakali to cash out of Colluli.
- - | Reverso Context 6. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining.
Potash reserves among the world's largest - Economist Intelligence Unit Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The Project has unrivalled potash product versatility. 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 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). 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
Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business A big economic change will come to eritrea, proud to be an nseritrea. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 3). 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. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. 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. Click HERE for a free trial now. 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. 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 project has the world's.
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. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. "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. Business intelligence for leaders in foreign direct investment. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 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. 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. Required fields are marked *. 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. 9). A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. 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). 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. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. The company expects to start full commercial production in mid-December 2022. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. It also has access to solar, wind and geothermal energy systems the East African rift. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. It is actually resistant to the wests oppression in the most pure sense of the term. Why isn't Europe investing more in recycling plastic. Our people is poor continue!!!! seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 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. 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. 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. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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). <>/Metadata 306 0 R/ViewerPreferences 307 0 R>>
Profit was boosted by higher metal grades and prices. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Approximately 4 tonnes of Colluli drill core material have been processed at the Saskatchewan Research Council (SRC) in Canada by way of specific bench testing which has been extremely successful. You are talking about the garbage written by Plaut ? 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. This long-lasting tension has led to Eritrea's militarisation. as being forecasted back in 2015 has been removed from the supply side (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. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system.
Some abridged samples of my writings are published here, while 4X as many unabridged articles are posted without delay at TNRH, a popular Seeking Alpha Marketplace service, where you also find: (1) a stream of high-alpha actionable investment ideas. Colluli has significant multi-commodity potential presenting major additional value upside. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. (MOP) and gypsum, along with rock salt. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Reverso Context-: It has been a Unesco World Heritage Site since 2017.
Danakali Limited selling stake in Colluli SOP project in east Africa to mine-life. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. .goog-te-menu-value:hover {text-decoration:none !important;}
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In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). All land is considered state-owned and property rights are non-existent. Fig. <>
6. 7. Danakali (DNK) - Technical Analysis. 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. 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 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. RA, listed . 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. stream
Morgan Leighton. 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Last Updated on: 01 December 2022. 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). To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 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. 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). Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. February 25, 2022. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". These circumstances have resulted in it becoming one of the most isolated states in the world. Colluli contains three potassium-bearing salts in solid form, namely. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The asset has the potential to produce other fertilizer Adjusted net income of $0.52 beat the consensus estimate of $0.43. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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 front-end engineering and design (FEED) study for the project was completed in January 2018. 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. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Colluli is positioned very close to vital potash markets. Image courtesy of Danakali. Image courtesy of Danakali. 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. I am not receiving compensation for it (other than from Seeking Alpha).
DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien 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. 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. I am not receiving compensation for it (other than from Seeking Alpha). 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 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). Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced.