Danakali Limited selling stake in Colluli SOP project in east Africa to The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. Colluli is located in the Danakil Depression . DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien RA, listed . The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. "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. 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). Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. This project has been viewed 588 times. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. 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. What Are the Best Fertilizer Stocks? Your email address will not be published. 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. #goog-gt-tt {display:none !important;} I wrote this article myself, and it expresses my own opinions. As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. Fig. Analysis of the Potential Contributions of Colluli Potash Project to Journalists say that getting any information out of the country is extremely difficult. () // Colluli Potash Project Eritrea Profit was boosted by higher metal grades and prices. The shortfall of projected and actual global potash capacity, from this source. 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. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 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. February 25, 2022. ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. 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). produce more than 472,000 tonnes a year of Sulphate of Potash. The stock seems to be agitating for a breakout in recent weeks (Fig. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. 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. In 2023, Botswana expects diamond output to decline by 1%. Plus500. 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. 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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. second phase of development, as the project has a possible 200-year plus 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.. US Level 1 ADR . it is promising future.for our country and people .Thank God. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Is this happening to you frequently? SOP in developing regions where the highest rates of population growth are expected, from. 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. and then onto production in 2022, Danakali said. It thus follows we should keep an eye on emerging potash producers. In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. 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). Danakali to use filtered sea water at Colluli potash mine - - | Reverso Context 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. Development Goals (SDGs). The report also identified how the mine could help Eritrea 2. Send Me Updates. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. phosphorus mines in usa Eritrea: potash and the pariah state - Investment Monitor We are confident in RA Internationals capabilities to deliver a high-quality product and service.. 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. 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. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. They have significant experience in executing projects of the scale and quality required for the Colluli project. 6. This long-lasting tension has led to Eritrea's militarisation. Danakali Lmited is selling share to China. Business intelligence for leaders in foreign direct investment. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. Based on what evidence? Danakali appoints Aggreko as power contractor at Colluli 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,. As inflation falls, what can be expected from the Bank of England in the months to come? Invest in t. 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? Afwerki's critics accuse him of using the long-standing border dispute with Ethiopia to avoid implementing Eritreas constitution which was ratified in 1997 and for postponing the first scheduled elections (which were also due in 1997). AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 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. / Danakali: Colluli Potash Mining Project Eritrea Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. It is actually resistant to the wests oppression in the most pure sense of the term. Danakali rates 2022 potash target unlikely as "all options - Miningmx Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. Shareholders are slated to . These include: No poverty, zero hunger, quality 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. A port development at Anfile Bay could assist in unlocking this potential. "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. 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. It assesses a wide range of econometric data and includes findings . 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. Proudly Researched by: Melanie Miles. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . PDF owned by For personal use only In 2023, Botswana expects diamond output to decline by 1%. The company expects to start full commercial production in mid-December 2022. 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. Standard, granular and soluble products can be produced for distribution to the market. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. 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. 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. Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). The government will benefit from the longer-term Fig. The SOP quality spectrum, from the same source as Fig. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. finished in June, will take the company a step closer to the construction phase 7. 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. 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. Click HERE for a free trial now. 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. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. 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. Our 3 Top Picks. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Notify me of follow-up comments by email. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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){}} Profit was boosted by higher metal grades and prices. Please disable your ad-blocker and refresh. 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. 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). Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For Eritrea was, until 2018, on the UNs sanctions list. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. 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. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Fig. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, 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. I am not receiving compensation for it (other than from Seeking Alpha). 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. 4. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Potash reserves among the world's largest - Economist Intelligence Unit The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Asmara is a beautiful city and awash in colonial Italian architectural gems. and mag chloride to be commercialized with minimal further processing required. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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. 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. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. 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. Danakali: Why This Little-Known Potash Developer Is A Buy Both are below. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. 4. 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. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Some people have been in national conscription for more than 20 years. 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. I wrote this article myself, and it expresses my own opinions. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. Fig. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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). 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. This post has been syndicated from a third-party source. 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. (. 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. Additional details about the agreement are available in the following announcement >>. 6. We need a bit of money.' Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa 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. Potash historical demand trends by region, from this source. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. 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.