colluli potash project in eritrea 2022

The report also identified how the mine could help Eritrea It describes Eritrea as "a dictatorship in which the media has no rights". The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. Why isn't Europe investing more in recycling plastic. Plus500. endobj Mining in Eritrea: could a new potash project spur sustainable growth? A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. 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 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. The company expects to start full commercial production in mid-December 2022. In some cases, depending on the ambient conditions, this process can take over two years. Select LanguageChinese (Simplified)EnglishGerman 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. it is promising future.for our country and people .Thank God. Danakali (DNK) - Technical Analysis. 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. 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. 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. Eritrea has one of the most erratic economies in the world, partly due to chronic drought and highly variable agricultural output: its GDP surged by 31% in 2014 before plummeting by -20.6% in 2015. In 2023, Botswana expects diamond output to decline by 1%. Best. Annual output Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. 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). Fig. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. 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. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. We have recently upgraded our technology platform. The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. Based on what evidence? 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). It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. RA, listed . MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Image courtesy of Danakali. In the long run, potash consumption is expected to continue to grow as a result of population expansion. 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 Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Posted by Daniel Gleeson on 21st August 2020. Send Me Updates. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. In 2023, Botswana expects diamond output to decline by 1%. Both are below. 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. 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. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. As inflation falls, what can be expected from the Bank of England in the months to come? 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){}} <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> This post has been syndicated from a third-party source. Fig. The company is yet to secure an additional US$52 million of capital. This long-lasting tension has led to Eritrea's militarisation. The front-end engineering design (FEED), expected to be Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritrea's key import/export facility. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 10). Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 5. 11). Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. 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). 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. The project will be developed in multi-modules, with Module I serving as a platform for future growth. "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. This geographical advantaged is unique. 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. "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. 86% of retail CFD accounts lose money. 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. and mag chloride to be commercialized with minimal further processing required. Image courtesy of Danakali. Danakali Limited selling stake in Colluli SOP project in east Africa to Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. 6. 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. 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. Danakali to cash out of Colluli - Mining Journal 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. The Colluli resource contains kainitite, sylvinite and carnallitite ores. We use them to give you the best experience. 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. advance its sustainable development agenda, which are 13 priority Sustainable 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. 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. Danakali appoints Aggreko as power contractor at Colluli Fig. 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. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. 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. Has access to the Ethiopian side of the deposit been guaranteed? Disclosure: I am/we are long SBMSF, CMP. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. Our 3 Top Picks. He is an alone, he is DICTATORSHIP! The agreement can be further extended by three years if mutually agreed upon. 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. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 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 Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. mine-life. 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. MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . These circumstances have resulted in it becoming one of the most isolated states in the world. Thank you for your comment. A big economic change will come to eritrea, proud to be an nseritrea. 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;iEritrea's potash mining takes shape but questions remain The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. The Colluli Potash Project (Project, Colluli ) is 100%. The company expects to start full commercial production in mid-December 2022. Its constitution has not been implemented, the parliament has been prorogued for many years, the ruling party has not held a congress for a number of years and independent media is banned. 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 estimated at US$73/t. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. All land is considered state-owned and property rights are non-existent. You are talking about the garbage written by Plaut ? %PDF-1.7 The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? The front-end engineering and design (FEED) study for the project was completed in January 2018. Producer of Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 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). PDF owned by For personal use only Colluli is positioned very close to vital potash markets. Danakali to cash out of Colluli. US Level 1 ADR . Proudly Researched by: Melanie Miles. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. Colluli is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. The asset has the potential to produce other fertilizer Business intelligence for leaders in foreign direct investment. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . 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. Only 1% of the population has access to the internet, according to the World Bank. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Fig. Fertiliser is a key component to ensure world food security in the future. as being forecasted back in 2015 has been removed from the supply side (Fig. 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. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Danakali rates 2022 potash target unlikely as "all options - Miningmx If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 9. Fig. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The project has the world's. development of the project, and the expected significant boost to royalties, The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 2 0 obj In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. There are many sources of potassium, including. 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. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Colluli Potash Project - MBS Environmental The Colluli potash project is expected to commence production in 2022. Danakali: Why This Little-Known Potash Developer Is A Buy 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. Additional details about the agreement are available in the following announcement >>. 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. education, gender equality, clean water and sanitation, sustainable economic The UN says forced labour and detention without trial are common. By. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at There are 70 Subscribers monitoring this project. Table 1. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. To lower infrastructure uncertainties, in August and October 2020, respectively, Danakali appointed RA International Group PLC as the preferred contractor for the supply of accommodation, support services, and other infrastructure buildings, and Aggreko (AGK.LSE) as its preferred power supply contractor for its 12MW HFO power plant at Colluli under a five-year BOOT contract, removing a major infrastructure uncertainty. 03 October 2022. endobj 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 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). 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. This project has been viewed 588 times. 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. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Colluli - Danakali Limited The project has a 200-year lifecycle and is expected to start operating in 2022. Colluli Potash Project, Eritrea. Reminders. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. We need a bit of money.' region, chief executive Niels Wagetold MINING.COM last year. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's 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. Fig. Danakali to sell stake in flagship Colluli potash project in Eritrea partnerships for the SDGs. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. with the move towards diplomatic relations between the once feuding countries 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). 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. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. Mobile data does not exist. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Potash reserves among the world's largest - Economist Intelligence Unit 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). 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. 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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. "There is a supportive business environment because mining there is a very strategic industry. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig.
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