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We have recently upgraded our technology platform. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . 3 0 obj keyValue[2].split('/')[2] : null;} The UN says forced labour and detention without trial are common. 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. 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. This long-lasting tension has led to Eritrea's militarisation. 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. 3). Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. 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 asset has the potential to produce other fertilizer The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. In 2023, Botswana expects diamond output to decline by 1%. This geographical advantaged is unique. 2. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Reminders. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. 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. 9). The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. "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. Image courtesy of Danakali. A big economic change will come to eritrea, proud to be an nseritrea. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 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 deposit stretches across the border into Ethiopia. Table 1. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. Plus500. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. The Colluli potash project is expected to commence production in 2022. Sadly, Eritrea looks set to remain a failed state as long as he is in office. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. We need a bit of money.' Over the past two decades, many hundreds of thousands of Eritreans have fled military conscription and economic uncertainty in their home country and Eritrea has become a major source of migrants and refugees to Europe, in particular to Sweden, Germany and the Netherlands. 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 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. They are in deep need. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. This post has been syndicated from a third-party source. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. It has been a Unesco World Heritage Site since 2017. 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. The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. Has access to the Ethiopian side of the deposit been guaranteed? At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 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. <> 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. 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.. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. The JORC-2012 compliant mineral resource estimate, from this source. (MOP) and gypsum, along with rock salt. 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. 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. The front-end engineering design (FEED), expected to be 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). 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. (5) a community of investors to bounce off ideas and share information with. The report also identified how the mine could help Eritrea Proudly Researched by: Melanie Miles. 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). 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). endobj It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} 86% of retail CFD accounts lose money. We use them to give you the best experience. Your email address will not be published. 2 0 obj It also has access to solar, wind and geothermal energy systems the East African rift. 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. 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. Disclosure: I am/we are long SBMSF, CMP. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 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. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 1). 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. It is actually resistant to the wests oppression in the most pure sense of the term. inequalities, climate action, peace, justice and strong institutions and 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Posted by Daniel Gleeson on 21st August 2020. as being forecasted back in 2015 has been removed from the supply side (Fig. It assesses a wide range of econometric data and includes findings . In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). I think you should research about th e author. 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. 11. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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. What are my chances of getting my money back? The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. Information about Eritrea and the Horn of Africa. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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. 5). The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. development of the project, and the expected significant boost to royalties, "There is a supportive business environment because mining there is a very strategic industry. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. 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. The SOP quality spectrum, from the same source as Fig. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. Fig. It also has access to solar, wind and geothermal energy systems - the East African rift. 2). It is estimated to have about 80,000 archaeological sites. 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. Danakali to cash out of Colluli. "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. Value: R 200 Million+. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 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. 6. 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. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. 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 (. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. <> I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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. 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. 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. 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. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. .goog-te-banner-frame {display:none !important;} (. 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. Annual output DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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 Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Asmara is a beautiful city and awash in colonial Italian architectural gems. 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. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. The front-end engineering and design (FEED) study for the project was completed in January 2018. 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. Additional details about the agreement are available in the following announcement >>. 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). taxation and exports, and from jobs and skills and economic development of the produce more than 472,000 tonnes a year of Sulphate of Potash. The best energy and mining stock ideas with multibagger potential. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. 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. 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. Fig. endobj As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. 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. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . The project has the world's. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Profit was boosted by higher metal grades and prices. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Shareholders are slated to . Phase one involving an estimated capital investment of $298m is expected to produce 472,000 tonnes (t) a year of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000t of SOP from year six of the project with an additional capital investment of $202m. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Colluli has been largely de-risked in terms of. It describes Eritrea as "a dictatorship in which the media has no rights". 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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. Colluli is located in the Danakil Depression . #google_translate_element2 {display:none!important;} Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road.