The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. All land is considered state-owned and property rights are non-existent. 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){}} The development of the Colluli potash projects coincides Danakali (DNK) - Technical Analysis. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The front-end engineering and design (FEED) study for the project was completed in January 2018. Fig. 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. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Producer of The front-end engineering and design (FEED) study for the project was completed in January 2018. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Fig. Journalists say that getting any information out of the country is extremely difficult. 6. The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). 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/). The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 6. 4). 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Development Goals (SDGs). There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. February 25, 2022. 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 company is yet to secure an additional US$52 million of capital. Danakali explored the use of filtered seawater at Colluli. Geothermal an energy option for Colluli mining project in Eritrea 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). 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 shortfall of projected and actual global potash capacity, from this source. 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 company expects to start full commercial production in mid-December 2022. In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. Danakali reports that the Colluli Mining Share Company (CMSC) has appointed RA International Group as its preferred contractor for the supply of accommodation, support services and other infrastructure buildings in support of the Colluli sulphate of potash project development, in Eritrea. The best energy and mining stock ideas with multibagger potential. 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. 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). The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 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 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. I am not receiving compensation for it (other than from Seeking Alpha). 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. Potash is the common term for fertiliser forms of the element potassium (K). In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. It assesses a wide range of econometric data and includes findings . 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. Image courtesy of Danakali. 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. Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertiliser. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 9). Last Updated on: 01 December 2022. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. 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. A big economic change will come to eritrea, proud to be an nseritrea. Table 1. I think you should research about th e author. "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. 2). 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. education, gender equality, clean water and sanitation, sustainable economic countries-Eritrea - - | Reverso Context DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Status: Design. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. It also has access to solar, wind and geothermal energy systems the East African rift. Has access to the Ethiopian side of the deposit been guaranteed? DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Fig. Danakali to cash out of Colluli - Mining Journal In 2023, Botswana expects diamond output to decline by 1%. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. 4. What are my chances of getting my money back? DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. Invest in t. Danakali to cash out of Colluli. 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. Eritrea's potash mining takes shape but questions remain Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. RA International to set up camp at Colluli sulphate of potash mine In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. Eritrea Archives - International Mining Reminders. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 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. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Danakali looks into solar, wind to power Eritrea potash project It thus follows we should keep an eye on emerging potash producers. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . This article lost credibility in characterizing the country of Eritrea as most oppressive regime. Finance > M-a. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. 7. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Agnico Eagle's EPS beat expectations; guidance maintained. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. 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. 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. 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. It is estimated to have about 80,000 archaeological sites. advance its sustainable development agenda, which are 13 priority Sustainable The project has a 200-year lifecycle and is expected to start operating in 2022. The deposit stretches across the border into Ethiopia. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 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. 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. Posted by Daniel Gleeson on 21st August 2020. It has been a Unesco World Heritage Site since 2017. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. endobj Danakali to sell stake in flagship Colluli potash project in Eritrea Colluli is the premier greenfield development project globally. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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 . Business intelligence for leaders in foreign direct investment. 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. PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. Colluli is positioned very close to vital potash markets. I have no business relationship with any company whose stock is mentioned in this article. Fig. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 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 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. <>/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 front-end engineering design (FEED), expected to be Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? the countrys GDP by 2021 and 50% of the nations exports by 2030, while Potash is an important fertiliser. 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. Required fields are marked *. 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.. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Fig. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Adjusted net income of $0.52 beat the consensus estimate of $0.43. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. keyValue[2].split('/')[2] : null;} 11). The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. second phase of development, as the project has a possible 200-year plus 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. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Fig. Potash historical demand trends by region, from this source. .goog-te-menu-value:hover {text-decoration:none !important;} (5) a community of investors to bounce off ideas and share information with. 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Send Me Updates. I have no business relationship with any company whose stock is mentioned in this article. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. He is an alone, he is DICTATORSHIP! Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. The agreement can be further extended by three years if mutually agreed upon. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. 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. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business 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. Is this happening to you frequently? Morgan Leighton. Danakali to sell stake in flagship Colluli potash project in Eritrea Posted by Daniel Gleeson on 21st August 2020. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. Danakali closer to getting Eritrea potash project off the ground EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. There is also potential for kieserite Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. 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. 6. 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. 1 0 obj The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. It also has access to solar, wind and geothermal energy systems the East African rift. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. 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? Standard, granular and soluble products can be produced for distribution to the market. 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). In the initial phase of operation, Wage said, Colluli would As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's Danakali appoints Aggreko as power contractor at Colluli Disclosure: I am/we are long SBMSF, CMP. %PDF-1.7 Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. 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. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. 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. ,and the value is around 67,000.00 . development of the project, and the expected significant boost to royalties, Colluli has significant multi-commodity potential presenting major additional value upside. 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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . By. 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. <> The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. They have significant experience in executing projects of the scale and quality required for the Colluli project. Danakali rates 2022 potash target unlikely as "all options - Miningmx A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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