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. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. % 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. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 2). The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash We use them to give you the best experience. 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. Both are below. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The project has now obtained all licenses and permits within the license area and has also been granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli mining license area. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. 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. (MOP) and gypsum, along with rock salt. Profit was boosted by higher metal grades and prices. 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. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Development is already underway with expected production in 2022. "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. Potash historical demand trends by region, from this source. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. PowerMiningOil & Gas >, 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. 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. 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. Value: R 200 Million+. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. Soraya Narfeldt, CEO of RA International, said: We are delighted to have been chosen as the preferred contractor to work with Danakali and its partners on this project which we see as globally significant. 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. 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 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. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. The company expects to start full commercial production in mid-December 2022. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). Our people is poor continue!!!! (. Fig. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 3). In the long run, potash consumption is expected to continue to grow as a result of population expansion. This geographical advantaged is unique. Fig. 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. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. All land is considered state-owned and property rights are non-existent. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Click HERE for a free trial now. endobj At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. 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. Simplified process flow for the production of SOP from the Colluli resource, from this source. providing 10,000 direct and indirect local jobs. Producer of They are in deep need. keyValue[2].split('/')[2] : null;} According to Reporters Without Borders, only North Korea has less press freedom. The deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. 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. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. 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. 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). Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The JORC-2012 compliant mineral resource estimate, from this source. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Fig. I think you should research about th e author. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. You are talking about the garbage written by Plaut ? On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. .goog-te-menu-value:hover {text-decoration:none !important;} (. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Development Goals (SDGs). The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Only 1% of the population has access to the internet, according to the World Bank. Proudly Researched by: Melanie Miles. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Morgan Leighton. (5) a community of investors to bounce off ideas and share information with. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 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. Colluli contains three potassium-bearing salts in solid form, namely. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. 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. 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. 4. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 9). In 2023, Botswana expects diamond output to decline by 1%. 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. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. finished in June, will take the company a step closer to the construction phase Sadly, Eritrea looks set to remain a failed state as long as he is in office. Last Updated on: 01 December 2022. Danakali explored the use of filtered seawater at Colluli. There is also potential for kieserite 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 has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. 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. "In the beginning, things were fine, but gradually it became clear to President Isaias [Afwerki], who led the independence struggle for 30 years, that things were not going the way he expected them to," said Martin Plaut, the former Africa Editor of the BBCs World Service, in an interview in 2019. 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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. It also has access to solar, wind and geothermal energy systems - the East African rift. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. It is actually resistant to the wests oppression in the most pure sense of the term. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Fig. After the Second World War, it was annexed to Ethiopia. Status: Design. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. 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 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. 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. 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. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Has access to the Ethiopian side of the deposit been guaranteed? 4). 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. Colluli is located in the Danakil Depression . Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. 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. He is an alone, he is DICTATORSHIP! with the move towards diplomatic relations between the once feuding countries Disclosure: I am/we are long SBMSF, CMP. Invest in t. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. it is promising future.for our country and people .Thank God. Your email address will not be published. It thus follows we should keep an eye on emerging potash producers. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. Danakali (DNK) - Technical Analysis. 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. In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. Fig. Based on what evidence? It is generally used in combination with the other two macro-nutrients, nitrogen and phosphorus, to produce a range of fertilisers, the type used being dependent on the soil to which it will be applied. The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million.

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