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. 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. 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Adjusted net income of $0.52 beat the consensus estimate of $0.43. I have no business relationship with any company whose stock is mentioned in this article. . Status: Design. 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. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. 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. This project has been viewed 588 times. 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. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. US Level 1 ADR . Reminders. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. The front-end engineering and design (FEED) study for the project was completed in January 2018. What Are the Best Fertilizer Stocks? Potash historical demand trends by region, from this source. This long-lasting tension has led to Eritrea's militarisation. 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. The UN says forced labour and detention without trial are common. 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. I have no business relationship with any company whose stock is mentioned in this article. 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. (2) live portfolios for both capital appreciation and income generation. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. finished in June, will take the company a step closer to the construction phase I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Disclosure: I am/we are long SBMSF, CMP. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). 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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. growth and decent work, industry, innovation and infrastructure, reduced of Eritrea and Ethiopia, which officially declared peace in July 2018. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 9). 1 0 obj Fertiliser is a key component to ensure world food security in the future. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. The project is the only known source of potash that allows extraction of the fertilizer in solid form. and mag chloride to be commercialized with minimal further processing required. 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. 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. 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. The company expects to start full commercial production in mid-December 2022. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . Select LanguageChinese (Simplified)EnglishGerman 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. 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. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. 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 (. Danakali to cash out of Colluli. 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 resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. Artists impression of the plant at the Colluli project. <> 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). 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. 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 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. 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). ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. advance its sustainable development agenda, which are 13 priority Sustainable Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Posted by Daniel Gleeson on 21st August 2020. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Danakali Lmited is selling share to China. Only 1% of the population has access to the internet, according to the World Bank. 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. Colluli is the premier greenfield development project globally. 5). The asset has the potential to produce other fertilizer <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at The development of the Colluli potash projects coincides Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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. Whilst SOP demand is population growth story it is more of an economic growth story and the African continent is seen to be where the majority of the worlds economic growth will occur in the coming decades.

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