Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The shortfall of projected and actual global potash capacity, from this source. Annual output Disclosure: I am/we are long SBMSF, CMP. 6. These authors includeSilver Coast Research, , among others. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 6. US Level 1 ADR . 1). 7. 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. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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. 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). It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.
products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Potash is an important fertiliser.
Construction nears at Colluli potash project following Eritrea ministry stream
3). 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 (. 5). . <>
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 . I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/). 4. Colluli Potash Project, Eritrea. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. Why isn't Europe investing more in recycling plastic. 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. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. 4.
Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 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. The Project has unrivalled potash product versatility. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. In 2023, Botswana expects diamond output to decline by 1%. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. 2 0 obj
Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. I am not receiving compensation for it (other than from Seeking Alpha). Fig. Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. 86% of retail CFD accounts lose money. Danakali (DNK) - Technical Analysis. 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. 9. 6. 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. The report also identified how the mine could help Eritrea What are my chances of getting my money back? So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . 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. advance its sustainable development agenda, which are 13 priority Sustainable .goog-te-menu-value:hover {text-decoration:none !important;}
The company is yet to secure an additional US$52 million of capital. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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. The front-end engineering and design (FEED) study for the project was completed in January 2018. I think you should research about th e author. Thank you for your comment. 4 0 obj
He is an alone, he is DICTATORSHIP! "There is a supportive business environment because mining there is a very strategic industry. 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. 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). On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. There is also potential for kieserite Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? In some cases, depending on the ambient conditions, this process can take over two years. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Proudly Researched by: Melanie Miles. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa.
Adjusted net income of $0.52 beat the consensus estimate of $0.43. endobj
The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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 Report was undertaken during 2018 by senior economists on behalf of the UNDP. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . These circumstances have resulted in it becoming one of the most isolated states in the world. This article lost credibility in characterizing the country of Eritrea as most oppressive regime.
Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Reminders. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig.
Danakali to start developing vast potash project in Eritrea 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.
Danakali (DNK) - Technical Analysis - Crux Investor 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. 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.. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. I have no business relationship with any company whose stock is mentioned in this article. 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. This project has been viewed 588 times. 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. partnerships for the SDGs. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally.
All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". endobj
SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world.
Danakali looks into solar, wind to power Eritrea potash project Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The company expects to start full commercial production in mid-December 2022. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. 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. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. 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. 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. 03 October 2022. This geographical advantaged is unique. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. 5. Mobile data does not exist. 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. Is this happening to you frequently? 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. Development Goals (SDGs). .goog-te-banner-frame {display:none !important;}
In the long run, potash consumption is expected to continue to grow as a result of population expansion. 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. "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. 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). %
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. 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.
Analysis of the Potential Contributions of Colluli Potash Project to Best. The asset has the potential to produce other fertilizer Our people is poor continue!!!! According to Reporters Without Borders, only North Korea has less press freedom. The deposit stretches across the border into Ethiopia. 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). Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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.
Danakali to sell stake in flagship Colluli potash project in Eritrea 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. AustraliasDanakali(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 (ENAMCO) to build the mine. It also has access to solar, wind and geothermal energy systems the East African rift. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. The front-end engineering design (FEED), expected to be Approximately 4 tonnes of Colluli drill core material have been processed at the Saskatchewan Research Council (SRC) in Canada by way of specific bench testing which has been extremely successful. What Are the Best Fertilizer Stocks? In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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.
Eritrea Archives - International Mining It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018.
Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. They are in deep need. Notify me of follow-up comments by email. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. growth and decent work, industry, innovation and infrastructure, reduced 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. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. Potash historical demand trends by region, from this source. Fig. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 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. 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.
Potash reserves among the world's largest - Economist Intelligence Unit Image courtesy of Danakali. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. <>
AustraliasDanakali(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 (ENAMCO) to build the mine.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.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.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.The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). The SOP quality spectrum, from the same source as Fig. 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. Colluli is located in the Danakil Depression . Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. If you have an ad-blocker enabled you may be blocked from proceeding. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>>
The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. 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. Potash is the common term for fertiliser forms of the element potassium (K). At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. 9).
Danakali to sell stake in flagship Colluli potash project in Eritrea 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. The best energy and mining stock ideas with multibagger potential. 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. development of the project, and the expected significant boost to royalties, 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. In the initial phase of operation, Wage said, Colluli would Profit was boosted by higher metal grades and prices. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. 6. The border with Sudan was closed until early 2019 because relations were so bad. 11. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 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. 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.
with the move towards diplomatic relations between the once feuding countries The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. The location of the Colluli potash deposit, from this source.
PDF owned by For personal use only The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. 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. Standard, granular and soluble products can be produced for distribution to the market. The company expects to start full commercial production in mid-December 2022.