Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a I wrote this article myself, and it expresses my own opinions. 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. I think you should research about th e author. As inflation falls, what can be expected from the Bank of England in the months to come? The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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. It describes Eritrea as "a dictatorship in which the media has no rights". 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). After all considerations and government taxes, Danakali said it expects to receive approximately $121m. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. The government will benefit from the longer-term The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. (. 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. Artists impression of the plant at the Colluli project. 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. The company expects to start full commercial production in mid-December 2022. The Colluli Potash Project (Project, Colluli ) is 100%. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. You are talking about the garbage written by Plaut ? Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. 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. 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 company expects to start full commercial production in mid-December 2022. 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. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. View the original article here. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Click HERE for a free trial now. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 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. One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. 5. 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 (. The report also identified how the mine could help Eritrea 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. Shallowest known evaporite deposit globally. The stock seems to be agitating for a breakout in recent weeks (Fig. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Colluli has been largely de-risked in terms of. 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 Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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 company is yet to secure an additional US$52 million of capital. There are 70 Subscribers monitoring this project. 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. education, gender equality, clean water and sanitation, sustainable economic Disclosure: I am/we are long SBMSF, CMP. Information about Eritrea and the Horn of Africa. 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. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. It also said that all vendor and contractor packages have now been received. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. The Project has unrivalled potash product versatility. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Fertiliser is a key component to ensure world food security in the future. 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. 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. Status: Design. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. In the long run, potash consumption is expected to continue to grow as a result of population expansion. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. Some people have been in national conscription for more than 20 years. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/). 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 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. % .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. 3 0 obj 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. "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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net 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. 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. 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. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Colluli is positioned very close to vital potash markets. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. it is promising future.for our country and people .Thank God. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. and mag chloride to be commercialized with minimal further processing required. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Shareholders are slated to . #google_translate_element2 {display:none!important;} Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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.
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