During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. <>
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. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. inequalities, climate action, peace, justice and strong institutions and (MOP) and gypsum, along with rock salt. It is estimated to have about 80,000 archaeological sites. Last Updated on: 01 December 2022. 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? Producer of It thus follows we should keep an eye on emerging potash producers. In some cases, depending on the ambient conditions, this process can take over two years. 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. The cost curve of SOP production as of 2018, from the same source as Fig. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. A big economic change will come to eritrea, proud to be an nseritrea. 4. SOP in developing regions where the highest rates of population growth are expected, from. Thank you for your comment. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . These include: No poverty, zero hunger, quality 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. The border with Sudan was closed until early 2019 because relations were so bad. second phase of development, as the project has a possible 200-year plus It has had a border war with Ethiopia and a clash along the border with Djibouti. It assesses a wide range of econometric data and includes findings . Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. I am not receiving compensation for it (other than from Seeking Alpha). The three key objectives set for the second phase of development included updating the capital estimate, project schedule and identifying key test work required to move into Phase 3. 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. .
Potash is the common term for fertiliser forms of the element potassium (K). Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. (. The JORC-2012 compliant mineral resource estimate, from this source. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea.
RA, listed . The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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 water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. advance its sustainable development agenda, which are 13 priority Sustainable Agnico Eagle's EPS beat expectations; guidance maintained. It has been a Unesco World Heritage Site since 2017. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Profit was boosted by higher metal grades and prices. This long-lasting tension has led to Eritrea's militarisation. 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.
Shallowest known evaporite deposit globally. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Fertiliser is a key component to ensure world food security in the future. .goog-te-menu-value:hover {text-decoration:none !important;}
The Colluli process is expected to generate a product with a purity of 94.5%. The UN says forced labour and detention without trial are common. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . 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.Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.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 project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. The project will be developed in multi-modules, with Module I serving as a platform for future growth. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . 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. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Only 1% of the population has access to the internet, according to the World Bank. (2) live portfolios for both capital appreciation and income generation. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. 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. 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. 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. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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 potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 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). These circumstances have resulted in it becoming one of the most isolated states in the world. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Our 3 Top Picks. 5. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. The FEED economic estimates, from the same source as Fig. It also has access to solar, wind and geothermal energy systems - the East African rift. Image courtesy of Danakali. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by:
The development of the Colluli potash projects coincides Danakali, an Australian company that has been developing the Colluli potash project in Eritrea, was recently granted permission by the Eritrean Ministry of Energy and Mines to commence commercial production at Colluli. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. The front-end engineering and design (FEED) study for the project was completed in January 2018. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . There are 70 Subscribers monitoring this project. 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. The project has now obtained all licenses and permits within the license area and has also been granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli mining license area. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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. Image courtesy of Danakali. Required fields are marked *. 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. If you have an ad-blocker enabled you may be blocked from proceeding.
Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. I wrote this article myself, and it expresses my own opinions. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? I wrote this article myself, and it expresses my own opinions. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 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. The best energy and mining stock ideas with multibagger potential. 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Table 1. (. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. As inflation falls, what can be expected from the Bank of England in the months to come? (5) a community of investors to bounce off ideas and share information with. Fig. produce more than 472,000 tonnes a year of Sulphate of Potash. The stock seems to be agitating for a breakout in recent weeks (Fig. It also has access to solar, wind and geothermal energy systems the East African rift. 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. 3 0 obj
I think you should research about th e author. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. "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. "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 has been largely de-risked in terms of. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. The Project has unrivalled potash product versatility. 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). He is an alone, he is DICTATORSHIP! The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. 9. 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). At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. 11. 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. Has access to the Ethiopian side of the deposit been guaranteed? 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. 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. The UN sanction was lifted by the UN in November 2018 under Resolution 2444, by the EU in the following month, and by the U.S. in May 2019. 5). Asmara is a beautiful city and awash in colonial Italian architectural gems. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. It describes Eritrea as "a dictatorship in which the media has no rights". The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. 2 0 obj
Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. The government will benefit from the longer-term It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. We have recently upgraded our technology platform. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Danakali explored the use of filtered seawater at Colluli. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>>
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. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Click HERE for a free trial now. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. Value: R 200 Million+. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. 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. 86% of retail CFD accounts lose money. They are in deep need. 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. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. What are the best countries for cryptocurrency adoption? Enter your email below to receive updates on your featured companies right to your inbox. Colluli has significant multi-commodity potential presenting major additional value upside. 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. function GTranslateFireEvent(element,event){try{if(document.createEventObject){var evt=document.createEventObject();element.fireEvent('on'+event,evt)}else{var evt=document.createEvent('HTMLEvents');evt.initEvent(event,true,true);element.dispatchEvent(evt)}}catch(e){}}
The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. In 2023, Botswana expects diamond output to decline by 1%. 6. 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. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritreas key import/export facility. It also said that all vendor and contractor packages have now been received. US Level 1 ADR . 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 fertilizer. 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. 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. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed.