"We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;}
Artists impression of the plant at the Colluli project. 6. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. By. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Thank you for your comment. A port development at Anfile Bay could assist in unlocking this potential. The UN says forced labour and detention without trial are common. The Colluli potash project is expected to commence production in 2022. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. 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. 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. 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. region, chief executive Niels Wagetold MINING.COM last year. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. EuroChem will purchase the entire SOP output of the Colluli phase one potash project under a 10-year binding off-take agreement signed in June 2018. 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. Posted by Daniel Gleeson on 21st August 2020. Asmara is a beautiful city and awash in colonial Italian architectural gems. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. Select LanguageChinese (Simplified)EnglishGerman
The project has a 200-year lifecycle and is expected to start operating in 2022. Has access to the Ethiopian side of the deposit been guaranteed? 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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,. Eritrea was, until 2018, on the UNs sanctions list. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). There is also potential for kieserite It also has access to solar, wind and geothermal energy systems the East African rift. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). providing 10,000 direct and indirect local jobs. I am not receiving compensation for it (other than from Seeking Alpha). Colluli has significant multi-commodity potential presenting major additional value upside. PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. of Eritrea and Ethiopia, which officially declared peace in July 2018. Finance > M-a. Colluli is positioned very close to vital potash markets. Mobile data does not exist. 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 countrys GDP by 2021 and 50% of the nations exports by 2030, while 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. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? SOP in developing regions where the highest rates of population growth are expected, from. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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. produce more than 472,000 tonnes a year of Sulphate of Potash. Fig. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. "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. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 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 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. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. US Level 1 ADR . This post has been syndicated from a third-party source. The document estimated that Colluli would contribute 3% of
stream
These authors includeSilver Coast Research, , among others. 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. (2) live portfolios for both capital appreciation and income generation. 1. 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. Looking for a helping hand in the market? . There are 70 Subscribers monitoring this project. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Our 3 Top Picks. Reverso Context-: 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. Image courtesy of Danakali. As inflation falls, what can be expected from the Bank of England in the months to come? 3 0 obj
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. Sadly, Eritrea looks set to remain a failed state as long as he is in office. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 3). 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. Disclosure: I am/we are long SBMSF, CMP. Colluli Potash Project, Eritrea. growth and decent work, industry, innovation and infrastructure, reduced The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. Fig. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. 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. This geographical advantaged is unique. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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. It also has access to solar, wind and geothermal energy systems - the East African rift. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. According to Reporters Without Borders, only North Korea has less press freedom. 10. In the long run, potash consumption is expected to continue to grow as a result of population expansion. 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. 9). I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. To open fire on your own disabled [people] is pretty appalling.". However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 6. The company is yet to secure an additional US$52 million of capital. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. 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. It is actually resistant to the wests oppression in the most pure sense of the term. 10). 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;i
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