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

They are in deep need. providing 10,000 direct and indirect local jobs. He is an alone, he is DICTATORSHIP! The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. it is promising future.for our country and people .Thank God. The cost curve of SOP production as of 2018, from the same source as Fig. The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. After the Second World War, it was annexed to Ethiopia. The government will benefit from the longer-term 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. Here Are 10 Other Analyst Forecasts For Tuesday, Berenberg Bank Sticks to Their Buy Rating for Nutrien (NTR), Registration on or use of this site constitutes acceptance of our. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). I have taken a starter position and plan to build a position of meaningful size in the next couple of years. 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. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. .goog-te-menu-value:hover {text-decoration:none !important;} 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 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. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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. the countrys GDP by 2021 and 50% of the nations exports by 2030, while A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. mine-life. (MOP) and gypsum, along with rock salt. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. "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. Colluli is positioned very close to vital potash markets. Danakali Lmited is selling share to China. with the move towards diplomatic relations between the once feuding countries The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 1). Potash is the common term for fertiliser forms of the element potassium (K). Profit was boosted by higher metal grades and prices. 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. Your email address will not be published. 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. Fig. #google_translate_element2 {display:none!important;} 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. Select LanguageChinese (Simplified)EnglishGerman 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. <> Colluli has been largely de-risked in terms of. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. 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. On December 3, 2019, Africa Finance Corporation also agreed to make a US$50 million equity investment in two tranches at A$0.60 per Danakali share. Artists impression of the plant at the Colluli project. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. 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. "In the beginning, things were fine, but gradually it became clear to President Isaias [Afwerki], who led the independence struggle for 30 years, that things were not going the way he expected them to," said Martin Plaut, the former Africa Editor of the BBCs World Service, in an interview in 2019. 4. A big economic change will come to eritrea, proud to be an nseritrea. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Fig. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. There is also potential for kieserite education, gender equality, clean water and sanitation, sustainable economic It has been a Unesco World Heritage Site since 2017. 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. Its constitution has not been implemented, the parliament has been prorogued for many years, the ruling party has not held a congress for a number of years and independent media is banned. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Based on what evidence? Both are below. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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 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. Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. We have recently upgraded our technology platform. 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. Image courtesy of Danakali. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. produce more than 472,000 tonnes a year of Sulphate of Potash. I have no business relationship with any company whose stock is mentioned in this article. Annual output Required fields are marked *. inequalities, climate action, peace, justice and strong institutions and The deposit stretches across the border into Ethiopia. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. 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 stock seems to be agitating for a breakout in recent weeks (Fig. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Journalists say that getting any information out of the country is extremely difficult. It is estimated to have about 80,000 archaeological sites. 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 independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 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. partnerships for the SDGs. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. Image courtesy of Danakali. 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. 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. Click HERE for a free trial now. Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. 03 October 2022. Standard, granular and soluble products can be produced for distribution to the market. The best energy and mining stock ideas with multibagger potential. Image courtesy of Danakali. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Danakali to cash out of Colluli. 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. 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. 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% . Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. % It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Has access to the Ethiopian side of the deposit been guaranteed? Send Me Updates. 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. Flour was awarded the FEED contract for the Colluli potash project in January 2017. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. This long-lasting tension has led to Eritrea's militarisation. and mag chloride to be commercialized with minimal further processing required. 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.