The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . 9. "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. Simplified process flow for the production of SOP from the Colluli resource, from this source. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Posted by Daniel Gleeson on 21st August 2020. Development Goals (SDGs). 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. 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 SOP quality spectrum, from the same source as Fig. Business intelligence for leaders in foreign direct investment. 2 0 obj Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. This post has been syndicated from a third-party source. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). 86% of retail CFD accounts lose money. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. 6. The company expects to start full commercial production in mid-December 2022. Required fields are marked *. 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). 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. Mobile data does not exist. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. 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. 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 is an ancient civilisation dating back thousands of years and was inhabited by early humans. Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). it is promising future.for our country and people .Thank God. Danakali explored the use of filtered seawater at Colluli. Image courtesy of Danakali. Are the rights of those working on the site ensured, or will they be slaves forced to work on the mine as National Service conscripts? 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. Colluli has significant multi-commodity potential presenting major additional value upside. Fig. We have recently upgraded our technology platform. 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. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Based on what evidence? 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. 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. To open fire on your own disabled [people] is pretty appalling.". 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. 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. Has access to the Ethiopian side of the deposit been guaranteed? Fig. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. They have significant experience in executing projects of the scale and quality required for the Colluli project. Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. It also has access to solar, wind and geothermal energy systems the East African rift. Reminders. endobj The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. In the initial phase of operation, Wage said, Colluli would For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. You are talking about the garbage written by Plaut ? 4. #goog-gt-tt {display:none !important;} Journalists say that getting any information out of the country is extremely difficult. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Potash is an important fertiliser. 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 JORC-2012 compliant mineral resource estimate, from this source. A port development at Anfile Bay could assist in unlocking this potential. The front-end engineering and design (FEED) study for the project was completed in January 2018. In August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. I have no business relationship with any company whose stock is mentioned in this article. 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. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. Invest in t. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Fig. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Fig. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). There are many sources of potassium, including. advance its sustainable development agenda, which are 13 priority Sustainable (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. View the original article here. Status: Design. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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). 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. 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 (. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. produce more than 472,000 tonnes a year of Sulphate of Potash. The Colluli resource contains kainitite, sylvinite and carnallitite ores. These alternative producers require substantial lead times to generate their harvest salts for processing. Please disable your ad-blocker and refresh. The Colluli potash project also involves evaporation ponds, a run-of-mine (ROM) pad, a sewage treatment plant, fuel storage tanks, accommodation camp, workshops, warehouses, and a main administrative building. There is also potential for kieserite Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. I have no business relationship with any company whose stock is mentioned in this article. The Colluli Potash Project (Project, Colluli ) is 100%. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 2). It also has access to solar, wind and geothermal energy systems the East African rift. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. This geographical advantaged is unique. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 8. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Information about Eritrea and the Horn of Africa. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 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 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. Profit was boosted by higher metal grades and prices. 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 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). I wrote this article myself, and it expresses my own opinions. 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. 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. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. According to Reporters Without Borders, only North Korea has less press freedom. 7. Looking for a helping hand in the market? In some cases, depending on the ambient conditions, this process can take over two years. 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. Artists impression of the plant at the Colluli project. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. It assesses a wide range of econometric data and includes findings . The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> February 25, 2022. 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.. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. <> EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Fig. region, chief executive Niels Wagetold MINING.COM last year. 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. 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. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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. 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. keyValue[2].split('/')[2] : null;} GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. This project has been viewed 588 times. US Level 1 ADR . 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. Finance > M-a. 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. Both are below. 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. 9). A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. of Eritrea and Ethiopia, which officially declared peace in July 2018. finished in June, will take the company a step closer to the construction phase Over the past two decades, many hundreds of thousands of Eritreans have fled military conscription and economic uncertainty in their home country and Eritrea has become a major source of migrants and refugees to Europe, in particular to Sweden, Germany and the Netherlands. 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. 4 0 obj 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. 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. 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% . DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative.