"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. 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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/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 3. <> The report also identified how the mine could help Eritrea Image courtesy of Danakali. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. 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. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. RA, listed . This long-lasting tension has led to Eritrea's militarisation. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Standard, granular and soluble products can be produced for distribution to the market. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. education, gender equality, clean water and sanitation, sustainable economic 6. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). The stock seems to be agitating for a breakout in recent weeks (Fig. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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). taxation and exports, and from jobs and skills and economic development of the The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. I wrote this article myself, and it expresses my own opinions. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). A big economic change will come to eritrea, proud to be an nseritrea. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). (. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. development of the project, and the expected significant boost to royalties, 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. The front-end engineering design (FEED), expected to be We use them to give you the best experience. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. 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. 9. 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. It has been a Unesco World Heritage Site since 2017. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Danakali Lmited is selling share to China. 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. Colluli has been largely de-risked in terms of. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. We have recently upgraded our technology platform. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. It assesses a wide range of econometric data and includes findings . The location of the Colluli potash deposit, from this source. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 4). Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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. It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. 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/). inequalities, climate action, peace, justice and strong institutions and

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