He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. Fig. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 11. Information about Eritrea and the Horn of Africa. RA, listed . The shortfall of projected and actual global potash capacity, from this source. The Colluli project requires low upfront development costs and is highly scalable for long-life production. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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. Danakali (DNK) - Technical Analysis. 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. 11). Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. It is estimated to have about 80,000 archaeological sites. 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. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. with the move towards diplomatic relations between the once feuding countries Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. I have no business relationship with any company whose stock is mentioned in this article. 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. 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). 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. By. 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. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. Click HERE for a free trial now. 1). Development is already underway with expected production in 2022. <> The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. I am not receiving compensation for it (other than from Seeking Alpha). Profit was boosted by higher metal grades and prices. Image courtesy of Danakali. In 2023, Botswana expects diamond output to decline by 1%. This geographical advantaged is unique. 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 (. Last Updated on: 01 December 2022. In the initial phase of operation, Wage said, Colluli would He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Your email address will not be published. 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. There is also potential for kieserite MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). 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. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Shareholders are slated to . body {top:0 !important;} These include: No poverty, zero hunger, quality 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Has access to the Ethiopian side of the deposit been guaranteed? 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 is the only known source of potash that allows extraction of the fertilizer in solid form. 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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). Profit was boosted by higher metal grades and prices. 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 miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Notify me of follow-up comments by email. 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. Why isn't Europe investing more in recycling plastic. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. This long-lasting tension has led to Eritrea's militarisation. Fertiliser is a key component to ensure world food security in the future. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. I wrote this article myself, and it expresses my own opinions. The best energy and mining stock ideas with multibagger potential. Posted by Daniel Gleeson on 21st August 2020. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The front-end engineering design (FEED), expected to be With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. 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. Finance > M-a. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. This project has been viewed 588 times. region, chief executive Niels Wagetold MINING.COM last year. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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). 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. A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. of Eritrea and Ethiopia, which officially declared peace in July 2018. It thus follows we should keep an eye on emerging potash producers. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). As inflation falls, what can be expected from the Bank of England in the months to come? However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. SOP in developing regions where the highest rates of population growth are expected, from. 2 0 obj 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. as being forecasted back in 2015 has been removed from the supply side (Fig. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. Artists impression of the plant at the Colluli project. The Colluli potash project is expected to commence production in 2022. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. The SOP quality spectrum, from the same source as Fig. 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. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 9). To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. Status: Design. 3. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. 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). The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Colluli is the premier greenfield development project globally. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. providing 10,000 direct and indirect local jobs. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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% . In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. (. The stock seems to be agitating for a breakout in recent weeks (Fig. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 6. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. 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 saleable SOP product will be trucked via road for sipping to the Massawa port which is located approximately 230km north-west of the project site. According to Reporters Without Borders, only North Korea has less press freedom. It has been a Unesco World Heritage Site since 2017. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. We need a bit of money.' It also has access to solar, wind and geothermal energy systems the East African rift. growth and decent work, industry, innovation and infrastructure, reduced Both are below. 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. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. The deposit stretches across the border into Ethiopia. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. .goog-te-banner-frame {display:none !important;} 10. What are my chances of getting my money back? 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 Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. 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.

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