I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. Flour was awarded the FEED contract for the Colluli potash project in January 2017. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. 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. mine-life. Fig. To lower infrastructure uncertainties, in August and October 2020, respectively, Danakali appointed RA International Group PLC as the preferred contractor for the supply of accommodation, support services, and other infrastructure buildings, and Aggreko (AGK.LSE) as its preferred power supply contractor for its 12MW HFO power plant at Colluli under a five-year BOOT contract, removing a major infrastructure uncertainty. It has had a border war with Ethiopia and a clash along the border with Djibouti. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 3). The project will be developed in multi-modules, with Module I serving as a platform for future growth. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. I think you should research about th e author. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. PDF owned by For personal use only It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. 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/). 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. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Has access to the Ethiopian side of the deposit been guaranteed? 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% . The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 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. This long-lasting tension has led to Eritrea's militarisation. Fig. It also has access to solar, wind and geothermal energy systems the East African rift. The FEED economic estimates, from the same source as Fig. 4. The asset has the potential to produce other fertilizer taxation and exports, and from jobs and skills and economic development of the 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. 10). 6. Notify me of follow-up comments by email. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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 Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien 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. second phase of development, as the project has a possible 200-year plus GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. 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 . 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. Colluli - Danakali Limited 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 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. (. 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 (. phosphorus mines in usa The Project has unrivalled potash product versatility. 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. The front-end engineering design (FEED), expected to be Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. The report also identified how the mine could help Eritrea
Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Annual output DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Image courtesy of Danakali. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. 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. produce more than 472,000 tonnes a year of Sulphate of Potash. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. 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. 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. The company expects to start full commercial production in mid-December 2022. I wrote this article myself, and it expresses my own opinions. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. 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. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. In 2023, Botswana expects diamond output to decline by 1%. Danakali Lmited is selling share to China. Only 1% of the population has access to the internet, according to the World Bank. The front-end engineering and design (FEED) study for the project was completed in January 2018. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. 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. Danakali rates 2022 potash target unlikely as "all options - Miningmx Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. .goog-te-banner-frame {display:none !important;}
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. 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. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. It also has access to solar, wind and geothermal energy systems - the East African rift.
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). It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Send Me Updates. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Danakali explored the use of filtered seawater at Colluli. The shortfall of projected and actual global potash capacity, from this source. The document estimated that Colluli would contribute 3% of 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. US Level 1 ADR . SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). providing 10,000 direct and indirect local jobs. 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. 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? Journalists say that getting any information out of the country is extremely difficult. 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. endobj
Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. Shallowest known evaporite deposit globally. 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. 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 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. Danakali (DNK) - Technical Analysis - Crux Investor region, chief executive Niels Wagetold MINING.COM last year. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. 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 border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 5. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Value: R 200 Million+. The UN says forced labour and detention without trial are common. Reverso Context-: Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. Morgan Leighton. with the move towards diplomatic relations between the once feuding countries All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". The Colluli process is expected to generate a product with a purity of 94.5%. Danakali closer to getting Eritrea potash project off the ground You are talking about the garbage written by Plaut ? 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. 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. Artists impression of the plant at the Colluli project. Our people is poor continue!!!! The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Business intelligence for leaders in foreign direct investment. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. 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. In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road.
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. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. The Colluli potash project is expected to commence production in 2022. 03 October 2022. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. 1). Please. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. and then onto production in 2022, Danakali said. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Potash is the common term for fertiliser forms of the element potassium (K). Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. We need a bit of money.' Profit was boosted by higher metal grades and prices. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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. Potash reserves among the world's largest - Economist Intelligence Unit 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. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. The project has the world's. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. The Colluli potash mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. "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. They are in deep need. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Click HERE for a free trial now. These circumstances have resulted in it becoming one of the most isolated states in the world.