colluli potash project in eritrea 2022

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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). 3). Eritrea: potash and the pariah state - Investment Monitor I have no business relationship with any company whose stock is mentioned in this article. The cost curve of SOP production as of 2018, from the same source as Fig. At mine-gate production costs of US$149-165/t or total cash costs of US$242-258/t, Colluli can be profitable even at the current low SOP price of US$500-650/t. 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. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Reminders. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. Both are below. Shareholders are slated to . The development of the Colluli potash projects coincides 11. Our people is poor continue!!!! 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. 5. 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). Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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$270/t. .goog-te-menu-value:hover {text-decoration:none !important;} function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. I wrote this article myself, and it expresses my own opinions. 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. According to Reporters Without Borders, only North Korea has less press freedom. Proudly Researched by: Melanie Miles. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Colluli has significant multi-commodity potential presenting major additional value upside. 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. We use them to give you the best experience. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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. Colluli Potash Project, Danakil - Mining Technology finished in June, will take the company a step closer to the construction phase Best. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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. Posted by Daniel Gleeson on 21st August 2020. 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. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> I think you should research about th e author. Based on what evidence? The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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 Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Click HERE for a free trial now. 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). The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. inequalities, climate action, peace, justice and strong institutions and The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Agnico Eagle's EPS beat expectations; guidance maintained. Danakali closer to getting Eritrea potash project off the ground "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. 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. Information about Eritrea and the Horn of Africa. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. / Danakali: Colluli Potash Mining Project Eritrea Danakali to cash out of Colluli - Mining Journal Danakali to sell stake in flagship Colluli potash project in Eritrea 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Image courtesy of Danakali. The UN says forced labour and detention without trial are common. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. 6. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Fig. 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. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. <> Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. () // Colluli Potash Project Eritrea (2) live portfolios for both capital appreciation and income generation. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The asset has the potential to produce other fertilizer Danakali to start developing vast potash project in Eritrea 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. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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 is located in the Danakil Depression on the Eritrean side of the Eritrea-Ethiopia border, a barren desert area ideal for large mine operations (Fig. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Is this happening to you frequently? Danakali to use filtered sea water at Colluli potash mine Danakali appoints Aggreko as power contractor at Colluli Plus500. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Looking for a helping hand in the market? These alternative producers require substantial lead times to generate their harvest salts for processing. The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. Geothermal an energy option for Colluli mining project in Eritrea Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Fig. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Development is already underway with expected production in 2022. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). World Class Potash Project In Eritrea Moves Closer To Development - Forbes There is also potential for kieserite Development Goals (SDGs). The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. The border with Sudan was closed until early 2019 because relations were so bad. keyValue[2].split('/')[2] : null;} 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 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. development of the project, and the expected significant boost to royalties, The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Danakali explored the use of filtered seawater at Colluli. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Producer of (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. 3 0 obj 4 0 obj 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. 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. The SOP quality spectrum, from the same source as Fig. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. 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 nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Fig. SOP in developing regions where the highest rates of population growth are expected, from. What are the best countries for cryptocurrency adoption? Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 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 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 about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. it is promising future.for our country and people .Thank God. 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. Potash is the common term for fertiliser forms of the element potassium (K). Journalists say that getting any information out of the country is extremely difficult. 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. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 2). Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. Disclosure: I am/we are long SBMSF, CMP. 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. I am not receiving compensation for it (other than from Seeking Alpha). endobj SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). Your email address will not be published. Only 1% of the population has access to the internet, according to the World Bank. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 2 0 obj Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. We need a bit of money.' 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. 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: Why This Little-Known Potash Developer Is A Buy Our 3 Top Picks. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . It also has access to solar, wind and geothermal energy systems the East African rift. 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. Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . RA, listed . Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). These include: No poverty, zero hunger, quality 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. 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. 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. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. He is an alone, he is DICTATORSHIP! 86% of retail CFD accounts lose money. Adjusted net income of $0.52 beat the consensus estimate of $0.43. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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). The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. 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. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 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 . 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. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. In some cases, depending on the ambient conditions, this process can take over two years. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. 5). The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Business intelligence for leaders in foreign direct investment. Select LanguageChinese (Simplified)EnglishGerman Fig. A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. 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 will be developed in multi-modules, with Module I serving as a platform for future growth. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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. Eritrea's potash mining takes shape but questions remain It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. 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.. Thank you for your comment. 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. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 9. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. There are 70 Subscribers monitoring this project. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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 (. This post has been syndicated from a third-party source. 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. Fig.

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