colluli potash project in eritrea 2022colluli potash project in eritrea 2022

5). As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. second phase of development, as the project has a possible 200-year plus The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. 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 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 total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Finance > M-a. 9). 6. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Danakali to cash out of Colluli. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. View the original article here. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). it is promising future.for our country and people .Thank God. The project is the only known source of potash that allows extraction of the fertilizer in solid form. It has been a Unesco World Heritage Site since 2017. with the move towards diplomatic relations between the once feuding countries Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! 1 0 obj Danakali Limited selling stake in Colluli SOP project in east Africa to The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. 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 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. The asset has the potential to produce other fertilizer The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. <> We need a bit of money.' The Colluli potash project is expected to commence production in 2022. Best. 1). Colluli is located in the Danakil Depression . There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The company is yet to secure an additional US$52 million of capital. Shallowest known evaporite deposit globally. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. Morgan Leighton. 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. phosphorus mines in usa 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 (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. 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. Adjusted net income of $0.52 beat the consensus estimate of $0.43. Required fields are marked *. Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. 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){}} partnerships for the SDGs. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Producer of 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. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). 11). The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 6. And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. 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. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Commonly, Potash refers to Potassium Chloride or Muriate of Potash (MOP), however, a number of other potash variants exist with premium potash types containing micro-nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate. If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 5. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. 4. Image courtesy of Danakali. 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 JORC-2012 compliant mineral resource estimate, from this source. There are 70 Subscribers monitoring this project. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. providing 10,000 direct and indirect local jobs. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} #google_translate_element2 {display:none!important;} The development of the Colluli potash projects coincides The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. % Send Me Updates. 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. Mobile data does not exist. It describes Eritrea as "a dictatorship in which the media has no rights". #goog-gt-tt {display:none !important;} It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;iColluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Value: R 200 Million+. 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). Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at The cost curve of SOP production as of 2018, from the same source as Fig. It also has access to solar, wind and geothermal energy systems the East African rift. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Artists impression of the plant at the Colluli project. (MOP) and gypsum, along with rock salt. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Please. "There is a supportive business environment because mining there is a very strategic industry. 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. Fig. Eritrea Archives - International Mining The deposit stretches across the border into Ethiopia. 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. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Geothermal an energy option for Colluli mining project in Eritrea Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. In the initial phase of operation, Wage said, Colluli would To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. (5) a community of investors to bounce off ideas and share information with. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: What are the best countries for cryptocurrency adoption? Image courtesy of Danakali. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For It assesses a wide range of econometric data and includes findings . 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Danakali to start developing vast potash project in Eritrea 2). 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. 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. 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. Colluli Potash Project, Eritrea. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. In 2023, Botswana expects diamond output to decline by 1%. 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. The water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. Danakali Lmited is selling share to China. 4 0 obj DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Colluli has been largely de-risked in terms of. Disclosure: I am/we are long SBMSF, CMP. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business 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. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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% . I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Thank you for your comment. The border with Sudan was closed until early 2019 because relations were so bad. Shareholders are slated to . All land is considered state-owned and property rights are non-existent. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. The report also identified how the mine could help Eritrea "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. 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. (. 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. Eritrea is bordered by Sudan in the west, Ethiopia in the south and Djibouti in the south-east, and it has a 1,150km coastline along the Red Sea. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Danakali explored the use of filtered seawater at Colluli. I have no business relationship with any company whose stock is mentioned in this article. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 6. 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. This geographical advantaged is unique. 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.. In 2023, Botswana expects diamond output to decline by 1%. 03 October 2022. These circumstances have resulted in it becoming one of the most isolated states in the world. Analysis of the Potential Contributions of Colluli Potash Project to Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. I wrote this article myself, and it expresses my own opinions. (2) live portfolios for both capital appreciation and income generation. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. This post has been syndicated from a third-party source. It is actually resistant to the wests oppression in the most pure sense of the term. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. The front-end engineering design (FEED), expected to be Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Click HERE for a free trial now. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Colluli Mining Share Company secured 165m ($200m) of senior debt finance from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) in August 2019. 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. Fig. The document estimated that Colluli would contribute 3% of 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. countries-Eritrea - - | Reverso Context 9. 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. Colluli Potash Project - MBS Environmental Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 3). They have significant experience in executing projects of the scale and quality required for the Colluli project. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. 10. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. To open fire on your own disabled [people] is pretty appalling.". Reverso Context-: as being forecasted back in 2015 has been removed from the supply side (Fig. It is estimated to have about 80,000 archaeological sites. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. Danakali closer to getting Eritrea potash project off the ground
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