03 October 2022. 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? The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. The company expects to start full commercial production in mid-December 2022. A big economic change will come to eritrea, proud to be an nseritrea. Fig. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. 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. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. 4. Danakali: Why This Little-Known Potash Developer Is A Buy Mobile data does not exist. "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. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 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. Table 1. Fig. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} 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). The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. It also said that all vendor and contractor packages have now been received. Colluli is the premier greenfield development project globally. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 2). Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. 3). 4. 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 above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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. The JORC-2012 compliant mineral resource estimate, from this source. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. 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 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. In 2023, Botswana expects diamond output to decline by 1%. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). World Class Potash Project In Eritrea Moves Closer To Development - Forbes The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). It assesses a wide range of econometric data and includes findings . But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. 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. finished in June, will take the company a step closer to the construction phase SOP in developing regions where the highest rates of population growth are expected, from. 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). We are confident in RA Internationals capabilities to deliver a high-quality product and service.. There is also potential for kieserite "There is a supportive business environment because mining there is a very strategic industry. 1). Invest in t. 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 best energy and mining stock ideas with multibagger potential. Potash is the common term for fertiliser forms of the element potassium (K). 2 0 obj My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Colluli has been largely de-risked in terms of. 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 fertiliser. #google_translate_element2 {display:none!important;} The location of the Colluli potash deposit, from this source. Artists impression of the plant at the Colluli project. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". By. Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). 6. 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. 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. Additional details about the agreement are available in the following announcement >>. 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. Colluli Potash Project, Eritrea. 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. 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). And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. and then onto production in 2022, Danakali said. 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. It thus follows we should keep an eye on emerging potash producers. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). It has had a border war with Ethiopia and a clash along the border with Djibouti. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. We use them to give you the best experience. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. We have recently upgraded our technology platform. It also has access to solar, wind and geothermal energy systems - the East African rift. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. mine-life. As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. Danakali appoints Aggreko as power contractor at Colluli 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. "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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. These include: No poverty, zero hunger, quality development of the project, and the expected significant boost to royalties, function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? ,and the value is around 67,000.00 . Notify me of follow-up comments by email. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Last Updated on: 01 December 2022. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. It is a member of the African Union, the UN and the Intergovernmental Authority on Development which deals with issues around drought and desertification in the Horn of Africa but it is the only African country (out of 55) not to sign up to the African Continental Free Trade Area, the huge free trade area that went live on 1 January 2021. 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. These authors includeSilver Coast Research, , among others. inequalities, climate action, peace, justice and strong institutions and Best. 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. Danakali Limited selling stake in Colluli SOP project in east Africa to The development of the Colluli potash projects coincides 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. 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. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The Colluli potash mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. Business intelligence for leaders in foreign direct investment. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. Looking for a helping hand in the market? Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. 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 (. Shareholders are slated to . body {top:0 !important;} After all considerations and government taxes, Danakali said it expects to receive approximately $121m. 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. They have significant experience in executing projects of the scale and quality required for the Colluli project. The saleable SOP product will be trucked via road for sipping to the Massawa port which is located approximately 230km north-west of the project site. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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. 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.
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