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? and then onto production in 2022, Danakali said. The shortfall of projected and actual global potash capacity, from this source. 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. 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. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The front-end engineering and design (FEED) study for the project was completed in January 2018. <> Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. In the long run, potash consumption is expected to continue to grow as a result of population expansion. inequalities, climate action, peace, justice and strong institutions and 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 Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Business intelligence for leaders in foreign direct investment. It is estimated to have about 80,000 archaeological sites. Fig. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 10. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Journalists say that getting any information out of the country is extremely difficult. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Colluli is positioned very close to vital potash markets. advance its sustainable development agenda, which are 13 priority Sustainable 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. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. 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 Colluli potash project is a low-cost, long-life sulphate of potash (SOP) fertiliser project under development by the Colluli Mining Share Company, a 50-50 joint venture partnership between the Australian start-up Danakali and the Eritrean National Mining Corporation. I 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. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. In 2023, Botswana expects diamond output to decline by 1%. Colluli is located in the Danakil Depression . EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. The company is yet to secure an additional US$52 million of capital. .goog-te-menu-value:hover {text-decoration:none !important;} Fig. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. It assesses a wide range of econometric data and includes findings . The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Danakali to cash out of Colluli. The Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. Standard, granular and soluble products can be produced for distribution to the market. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. 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. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. The company expects to start full commercial production in mid-December 2022. growth and decent work, industry, innovation and infrastructure, reduced Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. 86% of retail CFD accounts lose money. Looking for a helping hand in the market? .goog-te-banner-frame {display:none !important;} 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. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 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. Best. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. There is also potential for kieserite 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). Fig. 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. 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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. In 2023, Botswana expects diamond output to decline by 1%. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. In August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. (2) live portfolios for both capital appreciation and income generation. 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. 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. There are 70 Subscribers monitoring this project. 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 . 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). 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. Reminders. 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. Posted by Daniel Gleeson on 21st August 2020. % The project is the only known source of potash that allows extraction of the fertilizer in solid form. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Invest in t. 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 Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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). Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. 4. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. produce more than 472,000 tonnes a year of Sulphate of Potash. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. These alternative producers require substantial lead times to generate their harvest salts for processing. View the original article here. 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. He is an alone, he is DICTATORSHIP! Shareholders are slated to . Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. Annual output Additional details about the agreement are available in the following announcement >>. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. as being forecasted back in 2015 has been removed from the supply side (Fig. 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. 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 above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 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. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. The agreement can be further extended by three years if mutually agreed upon. By. 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. . Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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). Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. There are many sources of potassium, including. Danakali Lmited is selling share to China. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. The Project has unrivalled potash product versatility. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 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. In some cases, depending on the ambient conditions, this process can take over two years. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The three key objectives set for the second phase of development included updating the capital estimate, project schedule and identifying key test work required to move into Phase 3. 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. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Sadly, Eritrea looks set to remain a failed state as long as he is in office. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. This post has been syndicated from a third-party source. 2). 10). 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. 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. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Colluli Potash Project, Eritrea. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net The company expects to start full commercial production in mid-December 2022.
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