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. 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. I wrote this article myself, and it expresses my own opinions. Reminders. 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 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 Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. 6. 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. Fig. 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){}}
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. 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 It thus follows we should keep an eye on emerging potash producers. #goog-gt-tt {display:none !important;}
However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Best. 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. He is an alone, he is DICTATORSHIP! I wrote this article myself, and it expresses my own opinions. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. 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. The Colluli potash project is expected to commence production in 2022. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. In the initial phase of operation, Wage said, Colluli would with the move towards diplomatic relations between the once feuding countries .goog-te-banner-frame {display:none !important;}
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. 11). The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. Fig. Colluli is positioned very close to vital potash markets. View the original article here. 10. 6. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. 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. Fig. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. Fig. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Notify me of follow-up comments by email. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. (2) live portfolios for both capital appreciation and income generation. What are my chances of getting my money back? Standard, granular and soluble products can be produced for distribution to the market. 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 . 10). The company expects to start full commercial production in mid-December 2022. The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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). The project has a 200-year lifecycle and is expected to start operating in 2022. You are talking about the garbage written by Plaut ? According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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 shortfall of projected and actual global potash capacity, from this source. Required fields are marked *. The FEED economic estimates, from the same source as Fig. The Colluli project requires low upfront development costs and is highly scalable for long-life production. Fig. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of fertiliser. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Colluli contains three potassium-bearing salts in solid form, namely. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. Danakali (DNK) - Technical Analysis. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. Please. Reverso Context-: It also has access to solar, wind and geothermal energy systems the East African rift. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. It assesses a wide range of econometric data and includes findings . Simplified process flow for the production of SOP from the Colluli resource, from this source. 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). 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 (. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Our 3 Top Picks. 4 0 obj
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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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. In July 2013, major producer Belaruskali broke up with former Belarusian Potash Company cartel partner Uralkali, and in a move to grab market share, signed a potash sales contract for the Chinese market at US$315/t MOP. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Fig. It has been a Unesco World Heritage Site since 2017. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. development of the project, and the expected significant boost to royalties, 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. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Potash historical demand trends by region, from this source. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . They are in deep need. Plus500. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. 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. Eritrea was, until 2018, on the UNs sanctions list. Posted by Daniel Gleeson on 21st August 2020. The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');}
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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: inequalities, climate action, peace, justice and strong institutions and produce more than 472,000 tonnes a year of Sulphate of Potash. The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. The agreement can be further extended by three years if mutually agreed upon. Annual output The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. Why isn't Europe investing more in recycling plastic. Danakali Lmited is selling share to China.