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. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. "In the beginning, things were fine, but gradually it became clear to President Isaias [Afwerki], who led the independence struggle for 30 years, that things were not going the way he expected them to," said Martin Plaut, the former Africa Editor of the BBCs World Service, in an interview in 2019. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Fig. 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continued new business momentum with another significant award in the mining sector., Your email address will not be published. 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. The agreement can be further extended by three years if mutually agreed upon. Artists impression of the plant at the Colluli project. 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". Potash is the common term for fertiliser forms of the element potassium (K). 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The asset has the potential to produce other fertilizer It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. The front-end engineering design (FEED), expected to be 9. Simplified process flow for the production of SOP from the Colluli resource, from this source. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. Your email address will not be published. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. endobj 4). Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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. Value: R 200 Million+. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. 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. 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. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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. 3. View the original article here. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Enter your email below to receive updates on your featured companies right to your inbox. We have recently upgraded our technology platform. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. If you have an ad-blocker enabled you may be blocked from proceeding. 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. Business intelligence for leaders in foreign direct investment. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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? () // Colluli Potash Project Eritrea Morgan Leighton. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 6. 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. The document estimated that Colluli would contribute 3% of 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. "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. 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.. 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 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. 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. mine-life. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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. 1. inequalities, climate action, peace, justice and strong institutions and 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. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Mining in Eritrea: could a new potash project spur sustainable growth? 3). Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 1 0 obj education, gender equality, clean water and sanitation, sustainable economic 10). He is an alone, he is DICTATORSHIP! Danakali to sell stake in flagship Colluli potash project in Eritrea It describes Eritrea as "a dictatorship in which the media has no rights". (2) live portfolios for both capital appreciation and income generation. stream The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Danakali Limited selling stake in Colluli SOP project in east Africa to Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Shareholders are slated to . My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. 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. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. 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. 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. A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. RA International to set up camp at Colluli sulphate of potash mine 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. 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. The stock seems to be agitating for a breakout in recent weeks (Fig. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's 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. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. - - | Reverso Context In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. 11). Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. 11. Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. Danakali appoints Aggreko as power contractor at Colluli They have significant experience in executing projects of the scale and quality required for the Colluli project. Danakali (DNK) - Technical Analysis. ,and the value is around 67,000.00 . There is also potential for kieserite 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. The best energy and mining stock ideas with multibagger potential. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. #goog-gt-tt {display:none !important;} These include: No poverty, zero hunger, quality 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. endobj <> DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. 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. Information about Eritrea and the Horn of Africa. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. 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). Colluli is positioned very close to vital potash markets. 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. Potash is an important fertiliser. Danakali eyes finish line for Eritrea potash project It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. I wrote this article myself, and it expresses my own opinions. keyValue[2].split('/')[2] : null;} 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Eritrea was, until 2018, on the UNs sanctions list. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 6. It also has access to solar, wind and geothermal energy systems the East African rift. Image courtesy of Danakali. 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DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net produce more than 472,000 tonnes a year of Sulphate of Potash. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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% . 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. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. (. 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. / Danakali: Colluli Potash Mining Project Eritrea Fig. Danakali looks into solar, wind to power Eritrea potash project In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. It also said that all vendor and contractor packages have now been received. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. and then onto production in 2022, Danakali said. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> 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. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Fig. It is estimated to have about 80,000 archaeological sites. The project is the only known source of potash that allows extraction of the fertilizer in solid form. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. What are the best countries for cryptocurrency adoption? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Danakali: Why This Little-Known Potash Developer Is A Buy region, chief executive Niels Wagetold MINING.COM last year. You are talking about the garbage written by Plaut ? Danakali to sell stake in flagship Colluli potash project in Eritrea DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 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 owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). Click HERE for a free trial now. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa.
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