Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. %PDF-1.7 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. Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Please. 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. After the Second World War, it was annexed to Ethiopia. As inflation falls, what can be expected from the Bank of England in the months to come? The agreement can be further extended by three years if mutually agreed upon. 2. 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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. Business intelligence for leaders in foreign direct investment. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Asmara is a beautiful city and awash in colonial Italian architectural gems. Shallowest known evaporite deposit globally. Looking for a helping hand in the market? He is an alone, he is DICTATORSHIP! 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. Colluli is only 75km from the Red Sea coast, 87km from a port planned at the Anfile Bay, and 230km from the existing Port of Massawa, making it the SOP deposit closest to a coastline and giving it an advantage over competing projects in neighboring Ethiopia, such as the Yara Dallol project of Yara International ASA (. Both are below. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Additional details about the agreement are available in the following announcement >>. The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. Fig. 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. The project has the world's. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 11). 86% of retail CFD accounts lose money. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. 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. 4). Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. ,and the value is around 67,000.00 . This long-lasting tension has led to Eritrea's militarisation. Disclosure: I am/we are long SBMSF, CMP. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 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){}} 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 fertilizer. 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. 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). 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. 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. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. Fig. 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 . Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. .goog-te-menu-value:hover {text-decoration:none !important;} 6. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The front-end engineering and design (FEED) study for the project was completed in January 2018. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). Colluli Potash Project, Eritrea. 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 Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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. Potash is an important fertiliser. Our 3 Top Picks. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. (. 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. 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. 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. <> The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. 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. 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). 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. 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. 9). The company expects to start full commercial production in mid-December 2022. Shareholders are slated to . What are the best countries for cryptocurrency adoption? The Colluli Potash Project (Project, Colluli ) is 100%. 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. taxation and exports, and from jobs and skills and economic development of the Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. Fig. the countrys GDP by 2021 and 50% of the nations exports by 2030, while In 2023, Botswana expects diamond output to decline by 1%. Click HERE for a free trial now. providing 10,000 direct and indirect local jobs. 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. Reminders. 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. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a The location of the Colluli potash deposit, from this source. 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. 3. 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). Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. Send Me Updates. A port development at Anfile Bay could assist in unlocking this potential. . The company expects to start full commercial production in mid-December 2022. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia.