Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. 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 is just one of many deep-value natural resources ideas covered by Laurentian Research. 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. Please disable your ad-blocker and refresh. education, gender equality, clean water and sanitation, sustainable economic Fig. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. 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. The stock chart of Danakali, modified from this source. Information about Eritrea and the Horn of Africa. Value: R 200 Million+. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . 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. 6. Mobile data does not exist. 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? .goog-te-banner-frame {display:none !important;}
With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Shallowest known evaporite deposit globally. 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. 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 fertilizer. 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 number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Image courtesy of Danakali. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 3. These circumstances have resulted in it becoming one of the most isolated states in the world. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. inequalities, climate action, peace, justice and strong institutions and Colluli is located in the Danakil Depression . "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. #goog-gt-tt {display:none !important;}
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). A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Looking for a helping hand in the market? products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash If you have an ad-blocker enabled you may be blocked from proceeding. 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. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');}
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. Last Updated on: 01 December 2022. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 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). (MOP) and gypsum, along with rock salt. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli sites SOP fertiliser production over a 10-year term, from the Projects date of commissioning. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Notify me of follow-up comments by email. 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. 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. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. Danakali explored the use of filtered seawater at Colluli. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. "There is a supportive business environment because mining there is a very strategic industry. Danakali (DNK) - Technical Analysis. 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. 3). Fig. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. The report also identified how the mine could help Eritrea taxation and exports, and from jobs and skills and economic development of the Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. keyValue[2].split('/')[2] : null;}
Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders. As inflation falls, what can be expected from the Bank of England in the months to come? 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. The Colluli potash project is expected to commence production in 2022. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. region, chief executive Niels Wagetold MINING.COM last year. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. 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){}}
4). 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 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. stream
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. Your email address will not be published. A port development at Anfile Bay could assist in unlocking this potential. Journalists say that getting any information out of the country is extremely difficult. 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. 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 . Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). The project is the only known source of potash that allows extraction of the fertilizer in solid form. The asset has the potential to produce other fertilizer and mag chloride to be commercialized with minimal further processing required. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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. 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. 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. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. Fig. 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. 6. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Invest in t. It assesses a wide range of econometric data and includes findings . 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 3). 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. it is promising future.for our country and people .Thank God. 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. 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. (2) live portfolios for both capital appreciation and income generation. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. 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. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Status: Design. 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 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. ,and the value is around 67,000.00 . Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. second phase of development, as the project has a possible 200-year plus The UN sanction was lifted by the UN in November 2018 under Resolution 2444, by the EU in the following month, and by the U.S. in May 2019. Select LanguageChinese (Simplified)EnglishGerman
5. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. A big economic change will come to eritrea, proud to be an nseritrea. as being forecasted back in 2015 has been removed from the supply side (Fig. 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. (. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. 5). Reverso Context-: It has been a Unesco World Heritage Site since 2017. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. What are my chances of getting my money back? 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. Fig. 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. 6.
I have no business relationship with any company whose stock is mentioned in this article. 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. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . Additional details about the agreement are available in the following announcement >>. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 86% of retail CFD accounts lose money. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. The shortfall of projected and actual global potash capacity, from this source. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of fertiliser. and then onto production in 2022, Danakali said. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The stock seems to be agitating for a breakout in recent weeks (Fig. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Annual output 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). The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. These include: No poverty, zero hunger, quality Fig. Its constitution has not been implemented, the parliament has been prorogued for many years, the ruling party has not held a congress for a number of years and independent media is banned. Why isn't Europe investing more in recycling plastic. 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). It also has access to solar, wind and geothermal energy systems the East African rift. 2). The Colluli project lies in an area that saw detailed geological and geochemical work by USAID and US Geological Survey with the Eritrean Ministry of Mines and Energy. Colluli has significant multi-commodity potential presenting major additional value upside. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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