Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. body {top:0 !important;} (MOP) and gypsum, along with rock salt. The Colluli potash project is expected to commence production in 2022. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. To open fire on your own disabled [people] is pretty appalling.". Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 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. Notify me of follow-up comments by email. 4. development of the project, and the expected significant boost to royalties, 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. 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Best. 6. The stock seems to be agitating for a breakout in recent weeks (Fig. There is also potential for kieserite Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. Therefore, a wide moat that's rarely seen in miners of other commodities can be found among potash miners, such as Nutrien Ltd (NTR), as discussed by fellow Seeking Alpha authors. Invest in t. .goog-te-menu-value:hover {text-decoration:none !important;} Enter your email below to receive updates on your featured companies right to your inbox. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Click HERE for a free trial now. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. It is actually resistant to the wests oppression in the most pure sense of the term. 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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Profit was boosted by higher metal grades and prices. Since then, potash price has fallen from the neighborhood of US$600/t MOP to as low as USS$200/t MOP by 2017, and has since been fluctuating between US$200/t and US$270/t. Looking for a helping hand in the market? 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Australias Danakali (ASX, LON:DNK) said on Thursday it was in the final stages of completing the second phase of developmentof its world-class Colluli potash project in Eritrea, Africa. Development is already underway with expected production in 2022. 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. 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. % 03 October 2022. 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. The SOP quality spectrum, from the same source as Fig. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Finance > M-a. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. advance its sustainable development agenda, which are 13 priority Sustainable BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. 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. 6. Last Updated on: 01 December 2022. 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. 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. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. The UN says forced labour and detention without trial are common. The document estimated that Colluli would contribute 3% of Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Standard, granular and soluble products can be produced for distribution to the market. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. with the move towards diplomatic relations between the once feuding countries The company is yet to secure an additional US$52 million of capital. partnerships for the SDGs. The Project has unrivalled potash product versatility. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Why isn't Europe investing more in recycling plastic. Posted by Daniel Gleeson on 21st August 2020. 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. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Artists impression of the plant at the Colluli project. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. The Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). In the sprawling mining sector, potash mining is unique in that potash mines typically last decades to even centuries, thus forcing the miners to deploy capital for the long-term return, and that transportation of bulk-tonnage potash tends to lead to regional monopolies. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 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. Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. 4. 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. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Shallowest known evaporite deposit globally. Phase one involving an estimated capital investment of $298m is expected to produce 472,000 tonnes (t) a year of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000t of SOP from year six of the project with an additional capital investment of $202m. 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. 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 company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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. 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. Fig. 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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. 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. Please disable your ad-blocker and refresh. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. 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. 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/). 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. Status: Design. Due to this change if you are seeing this message for the first time please make sure you reset your password using the Forgot your password Link. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). Annual output Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. I think you should research about th e author. AustraliasDanakali(ASX: DNK) is selling its 50% stake in the Colluli potash project in Eritrea, Africa, almost 13 years after partnering with the Eritrean National Mining Corporation (ENAMCO) to build the mine.Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.The Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. I have no business relationship with any company whose stock is mentioned in this article. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. What Are the Best Fertilizer Stocks? You are talking about the garbage written by Plaut ? 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 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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. The operating environment weighed heavily on Danakalis decision, as Eritrea is ruled by one of the worldsmost oppressive regimes and was until 2018 on the UNs sanctions list. The stock chart of Danakali, modified from this source. The front-end engineering design (FEED), expected to be DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. These alternative producers require substantial lead times to generate their harvest salts for processing. 6. 1. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. 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. "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. 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. 8. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. In 2023, Botswana expects diamond output to decline by 1%. These authors includeSilver Coast Research, , among others. Some people have been in national conscription for more than 20 years. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. inequalities, climate action, peace, justice and strong institutions and document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Your email address will not be published. 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 nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. Fig. All land is considered state-owned and property rights are non-existent. 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. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Under the current FEED study for Module 1 and 2, Danakali will be one of the lowest cost SOP producers and with the development of the loading facility at Anfile Bay costs will decrease further as transportation costs are reduced. Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 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 deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. 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. 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.