The project is the only known source of potash that allows extraction of the fertilizer in solid form. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. The project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. The location of the Colluli potash deposit, from this source. These circumstances have resulted in it becoming one of the most isolated states in the world. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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 Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. 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, 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. 2). Reverso Context-: It has been a Unesco World Heritage Site since 2017. 2. Fig. Why isn't Europe investing more in recycling plastic. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). A big economic change will come to eritrea, proud to be an nseritrea. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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. 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. Fig. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. I wrote this article myself, and it expresses my own opinions. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Colluli has been largely de-risked in terms of. Colluli Potash Project, Eritrea. 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. 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. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product. Adjusted net income of $0.52 beat the consensus estimate of $0.43. The shortfall of projected and actual global potash capacity, from this source. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 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 construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. taxation and exports, and from jobs and skills and economic development of the The border with Sudan was closed until early 2019 because relations were so bad. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 11). The Colluli project requires low upfront development costs and is highly scalable for long-life production. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? 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. View the original article here. 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. 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. The FEED results and the recent completion of test work and additional verification provide a higher level of financial certainty to project financiers, further de-risking the investment proposition. It is estimated to have about 80,000 archaeological sites. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 3). second phase of development, as the project has a possible 200-year plus Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. 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. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Fig. Development Goals (SDGs). The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. 6. 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. By. 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. 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). .goog-te-banner-frame {display:none !important;} 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. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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). 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. 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){}} Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. 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. The stock chart of Danakali, modified from this source. This post has been syndicated from a third-party source. Disclosure: I am/we are long SBMSF, CMP. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. The Colluli Potash Project (Project, Colluli ) is 100%. Potash is the common term for fertiliser forms of the element potassium (K). Is this happening to you frequently? 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. 4. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. 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. 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. 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. RA, listed . Thank you for your comment. 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). 6. Shareholders are slated to . Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. endobj 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 . 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 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Profit was boosted by higher metal grades and prices. Required fields are marked *. Your email address will not be published. A two-and-a-half-year border war between Ethiopia and Eritrea ended in June 2000 and was followed by about eight years of heightened tension and hostility between the two countries. Image courtesy of Danakali. produce more than 472,000 tonnes a year of Sulphate of Potash. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Danakali explored the use of filtered seawater at Colluli. Fig. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. The cost curve of SOP production as of 2018, from the same source as Fig. 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. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. In the initial phase of operation, Wage said, Colluli would The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. 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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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. The company expects to start full commercial production in mid-December 2022. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The Colluli potash project is expected to commence production in 2022. Additional details about the agreement are available in the following announcement >>. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at with the move towards diplomatic relations between the once feuding countries The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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.. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). Colluli is the premier greenfield development project globally. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} 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. The front-end engineering and design (FEED) study for the project was completed in January 2018. This geographical advantaged is unique. It has had a border war with Ethiopia and a clash along the border with Djibouti. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. 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Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Fig. The asset has the potential to produce other fertilizer 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. We use them to give you the best experience. It also has access to solar, wind and geothermal energy systems the East African rift. 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. 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. The operating environment weighed heavily on Danakalis decision, as Eritrea is ruled by one of the worldsmost oppressive regimes and was until 2018 on the UNs sanctions list. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Invest in t. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Click HERE for a free trial now. 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 (. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. endobj 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. it is promising future.for our country and people .Thank God. On December 3, 2019, Africa Finance Corporation also agreed to make a US$50 million equity investment in two tranches at A$0.60 per Danakali share. The document estimated that Colluli would contribute 3% of 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. It also has access to solar, wind and geothermal energy systems the East African rift. This project has been viewed 588 times. The front-end engineering and design (FEED) study for the project was completed in January 2018. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. 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. 1 0 obj 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. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The project will be developed in multi-modules, with Module I serving as a platform for future growth. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Fig. <> 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. . 6. 4 0 obj My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Value: R 200 Million+. 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 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. 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. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. US Level 1 ADR . 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/). 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). In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. 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. In 2023, Botswana expects diamond output to decline by 1%. Simplified process flow for the production of SOP from the Colluli resource, from this source. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? Colluli contains three potassium-bearing salts in solid form, namely. Select LanguageChinese (Simplified)EnglishGerman 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. 9). February 25, 2022. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022.