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The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Danakali (DNK) - Technical Analysis. M&A: Mining Finance | Mining Journal 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. According to Reporters Without Borders, only North Korea has less press freedom. 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. . Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Danakali explored the use of filtered seawater at Colluli. I have no business relationship with any company whose stock is mentioned in this article. In 2023, Botswana expects diamond output to decline by 1%. With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 3). The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The Colluli resource contains kainitite, sylvinite and carnallitite ores. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Danakali to sell stake in flagship Colluli potash project in Eritrea Fig. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. It is estimated to have about 80,000 archaeological sites. 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.. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. It assesses a wide range of econometric data and includes findings . The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). 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. Why isn't Europe investing more in recycling plastic. 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. 2. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. In some cases, depending on the ambient conditions, this process can take over two years. A port development at Anfile Bay could assist in unlocking this potential. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. Has access to the Ethiopian side of the deposit been guaranteed? One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. 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. Fig. Only 1% of the population has access to the internet, according to the World Bank. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. 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. as being forecasted back in 2015 has been removed from the supply side (Fig. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy Potash is the common term for fertiliser forms of the element potassium (K). Your email address will not be published. Danakali rates 2022 potash target unlikely as "all options - Miningmx Information about Eritrea and the Horn of Africa. I am not receiving compensation for it (other than from Seeking Alpha). MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. We need a bit of money.' Phase one, involving an estimated capital investment of 220m ($298m), is expected to produce 472,000 tonnes per annum (tpa) of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000tpa of SOP from year six of the project with an additional capital investment of 148m ($202m). Plus500. The agreement can be further extended by three years if mutually agreed upon. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. These alternative producers require substantial lead times to generate their harvest salts for processing. Colluli is located in the Danakil Depression . The front-end engineering design (FEED), expected to be 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. 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. Copyright 2023, All Rights Reserved | Alphastox | Proudly Hosted by, Danakali to sell stake in flagship Colluli potash project in Eritrea, Canada Nickel develops new method for accelerated carbon capture, Patriot Battery Metals drills nine holes at Corvette, Metso Outotec expands digital grinding inspections with acquisition of Global Physical, Fatal accident at Ivanhoes Kamoa-Kakula mine in Congo. 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). 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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. Shallowest known evaporite deposit globally. education, gender equality, clean water and sanitation, sustainable economic 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. 6. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. inequalities, climate action, peace, justice and strong institutions and The deposit stretches across the border into Ethiopia. ,and the value is around 67,000.00 . 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. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. 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. Last Updated on: 01 December 2022. The stock chart of Danakali, modified from this source. 2). Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. () // Colluli Potash Project Eritrea There are 70 Subscribers monitoring this project. What Are the Best Fertilizer Stocks? 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. region, chief executive Niels Wagetold MINING.COM last year. 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? Development Goals (SDGs). Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. 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. 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. PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. The UN says forced labour and detention without trial are common. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. 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 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. 2 0 obj Reminders. 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 project will be developed in multi-modules, with Module I serving as a platform for future growth. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. the countrys GDP by 2021 and 50% of the nations exports by 2030, while 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. As inflation falls, what can be expected from the Bank of England in the months to come? <> The Colluli Potash Project (Project, Colluli ) is 100%. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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 project has a 200-year lifecycle and is expected to start operating in 2022. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. The Colluli process is expected to generate a product with a purity of 94.5%. This geographical advantaged is unique. Mobile data does not exist. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Fig. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. 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 decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Potash is an important fertiliser. 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. 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. You are talking about the garbage written by Plaut ? The company is yet to secure an additional US$52 million of capital. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. Status: Design. Danakali to use filtered sea water at Colluli potash mine 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. 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 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. 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. 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.