colluli potash project in eritrea 2022 colluli potash project in eritrea 2022

This project has been viewed 588 times. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Danakali explored the use of filtered seawater at Colluli. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). They are in deep need. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. There is also potential for kieserite It is estimated to have about 80,000 archaeological sites. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. Fig. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Standard, granular and soluble products can be produced for distribution to the market. What are the best countries for cryptocurrency adoption? 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, 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. 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. Plus500. 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. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. .goog-te-banner-frame {display:none !important;} I wrote this article myself, and it expresses my own opinions. The stock chart of Danakali, modified from this source. 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). The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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). 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). Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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/). 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 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 (. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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. In 2023, Botswana expects diamond output to decline by 1%. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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 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. Shallowest known evaporite deposit globally. Potash is the common term for fertiliser forms of the element potassium (K). AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. It assesses a wide range of econometric data and includes findings . Colluli Potash Project, Eritrea. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. According to Reporters Without Borders, only North Korea has less press freedom. 10. 6. 11. 1). 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 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. 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. Is this happening to you frequently? Please. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. 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. They have significant experience in executing projects of the scale and quality required for the Colluli project. growth and decent work, industry, innovation and infrastructure, reduced 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. 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. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. Fig. finished in June, will take the company a step closer to the construction phase The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Enter your email below to receive updates on your featured companies right to your inbox. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. In the sprawling mining sector, potash mining is unique in that potash mines typically last decades to even centuries, thus forcing the miners to deploy capital for the long-term return, and that transportation of bulk-tonnage potash tends to lead to regional monopolies. US Level 1 ADR . Fig. 1 0 obj Proudly Researched by: Melanie Miles. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Commonly, Potash refers to Potassium Chloride or Muriate of Potash (MOP), however, a number of other potash variants exist with premium potash types containing micro-nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate. All land is considered state-owned and property rights are non-existent. 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. keyValue[2].split('/')[2] : null;} 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. 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 location of the Colluli potash deposit, from this source. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. it is promising future.for our country and people .Thank God. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. It also has access to solar, wind and geothermal energy systems - the East African rift. Artists impression of the plant at the Colluli project. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Danakali (DNK) - Technical Analysis. In some cases, depending on the ambient conditions, this process can take over two years. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. In 2023, Botswana expects diamond output to decline by 1%. stream The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain.