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Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. I have no business relationship with any company whose stock is mentioned in this article. Simplified process flow for the production of SOP from the Colluli resource, from this source. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. it is promising future.for our country and people .Thank God. I wrote this article myself, and it expresses my own opinions. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The cost curve of SOP production as of 2018, from the same source as Fig. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. of Eritrea and Ethiopia, which officially declared peace in July 2018. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. development of the project, and the expected significant boost to royalties, We need a bit of money.' Last Updated on: 01 December 2022. the countrys GDP by 2021 and 50% of the nations exports by 2030, while keyValue[2].split('/')[2] : null;} 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. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. 2). The Colluli process is expected to generate a product with a purity of 94.5%. Has access to the Ethiopian side of the deposit been guaranteed? 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. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 3. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 1. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. 4 0 obj 4. Image courtesy of Danakali. US Level 1 ADR . Across the country, an estimated two-thirds of households are impacted by food insecurity. 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 think you should research about th e author. Based on what evidence? Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. Best. 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. (. 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. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 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. endobj Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Image courtesy of Danakali. Colluli has significant multi-commodity potential presenting major additional value upside. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . % Potash historical demand trends by region, from this source. Morgan Leighton. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Potash is the common term for fertiliser forms of the element potassium (K). The company expects to start full commercial production in mid-December 2022. The JORC-2012 compliant mineral resource estimate, from this source. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. 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 agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. 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){}} Colluli is positioned very close to vital potash markets. RA, listed . The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australia's Danakali and Eritrean National Mining Corporation (ENAMCO). The agreement can be further extended by three years if mutually agreed upon. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (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. Table 1. as being forecasted back in 2015 has been removed from the supply side (Fig. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. 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's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. 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. Fig. Fig. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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. 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. 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. 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. Artists impression of the plant at the Colluli project. 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Australia's Danakali (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. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. 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 Danakil Depression is an emerging potash province in Eritrea and Ethiopia. and mag chloride to be commercialized with minimal further processing required. What are the best countries for cryptocurrency adoption? Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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. The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. 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. It describes Eritrea as "a dictatorship in which the media has no rights". The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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. growth and decent work, industry, innovation and infrastructure, reduced In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. These circumstances have resulted in it becoming one of the most isolated states in the world. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: partnerships for the SDGs. Development Goals (SDGs). The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 1). Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. 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. The company is yet to secure an additional US$52 million of capital. 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. 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. Proudly Researched by: Melanie Miles. 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). 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. 3). There are many sources of potassium, including. 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. 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. 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. 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. 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. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate.

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