development of the project, and the expected significant boost to royalties, 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. 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. 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 Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The stock seems to be agitating for a breakout in recent weeks (Fig. The project has the world's. Table 1. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. If you have an ad-blocker enabled you may be blocked from proceeding. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. 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. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 4). Colluli contains three potassium-bearing salts in solid form, namely. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. Danakali Limited selling stake in Colluli SOP project in east Africa to inequalities, climate action, peace, justice and strong institutions and 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. The company is yet to secure an additional US$52 million of capital. As the commodity supercycle unfolds, you are invited to join The Natural Resources Hub today to take advantage of a slew of generational opportunities alongside Laurentian Research. it is promising future.for our country and people .Thank God. There are many sources of potassium, including. I have no business relationship with any company whose stock is mentioned in this article. 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. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. It also has access to solar, wind and geothermal energy systems the East African rift. phosphorus mines in usa Fertiliser is a key component to ensure world food security in the future. Shallowest known evaporite deposit globally. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Construction nears at Colluli potash project following Eritrea ministry 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. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 9. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. "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. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. Simplified process flow for the production of SOP from the Colluli resource, from this source. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. It also has access to solar, wind and geothermal energy systems the East African rift. The Colluli resource contains kainitite, sylvinite and carnallitite ores. It also has access to solar, wind and geothermal energy systems - the East African rift. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Image courtesy of Danakali. Colluli is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. 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. 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). Plus500. <> It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 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. Artists impression of the plant at the Colluli project. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. Danakali to cash out of Colluli - Mining Journal Asmara is a beautiful city and awash in colonial Italian architectural gems. World Class Potash Project In Eritrea Moves Closer To Development - Forbes 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. and mag chloride to be commercialized with minimal further processing required. "There is a supportive business environment because mining there is a very strategic industry. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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. Information about Eritrea and the Horn of Africa. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 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. 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. Das wrde mich fr Eritrea sehr freuen und hoffe das es den Menschen dort zugute kommt.Ich liebe dieses Land zumal meine Tochter einen eritreischen Vater hat.. 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. 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. It is actually resistant to the wests oppression in the most pure sense of the term. View the original article here. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. It assesses a wide range of econometric data and includes findings . Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 2. This geographical advantaged is unique. .goog-te-banner-frame {display:none !important;} The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. Eritrea was, until 2018, on the UNs sanctions list. 7. Fig. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Danakali to sell stake in flagship Colluli potash project in Eritrea Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. These authors includeSilver Coast Research, , among others. It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} It is estimated to have about 80,000 archaeological sites. endobj 03 October 2022. To open fire on your own disabled [people] is pretty appalling.". The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. of Eritrea and Ethiopia, which officially declared peace in July 2018. 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). 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 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). The stock chart of Danakali, modified from this source. Has access to the Ethiopian side of the deposit been guaranteed? 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. (. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. We need a bit of money.' Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. - - | Reverso Context The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. 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. In 2023, Botswana expects diamond output to decline by 1%. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. 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. 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. 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. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The Colluli project requires low upfront development costs and is highly scalable for long-life production. 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. The Colluli process is expected to generate a product with a purity of 94.5%. 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. 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. The asset has the potential to produce other fertilizer mine-life. By. As inflation falls, what can be expected from the Bank of England in the months to come? In some cases, depending on the ambient conditions, this process can take over two years. The UN says forced labour and detention without trial are common. education, gender equality, clean water and sanitation, sustainable economic 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. 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Proudly Researched by: Melanie Miles. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. We use them to give you the best experience. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. 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). The agreement can be further extended by three years if mutually agreed upon. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. The border with Sudan was closed until early 2019 because relations were so bad. 10). Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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 decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Danakali closer to getting Eritrea potash project off the ground 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 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. 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. According to Reporters Without Borders, only North Korea has less press freedom. 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. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Danakali (DNK) - Technical Analysis. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: We have recently upgraded our technology platform. Eritrea one of the least accessible countries for humanitarian organisations, Searches, Arrests, and Tension in Eritrea, Eritreas jailed journalist exhibition opens in UK Parliament, Dispute over Patriach splits Norwegian Orthodox church in two, Twenty one years after being jailed, Eritreas independent journalists are remembered in the British Parliament. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Fig. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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){}} document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Colluli is the premier greenfield development project globally. After the Second World War, it was annexed to Ethiopia. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. What are the best countries for cryptocurrency adoption? keyValue[2].split('/')[2] : null;} Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Only 1% of the population has access to the internet, according to the World Bank. 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. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. 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 fertiliser. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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 project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. Based on what evidence? The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). The project is the only known source of potash that allows extraction of the fertilizer in solid form. %PDF-1.7 With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. Potash is an important fertiliser. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Danakali reports that the Colluli Mining Share Company (CMSC) has appointed RA International Group as its preferred contractor for the supply of accommodation, support services and other infrastructure buildings in support of the Colluli sulphate of potash project development, in Eritrea. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia.