,and the value is around 67,000.00 . Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. US Level 1 ADR . Danakali explored the use of filtered seawater at Colluli. Why isn't Europe investing more in recycling plastic. 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. I wrote this article myself, and it expresses my own opinions. The asset has the potential to produce other fertilizer Profit was boosted by higher metal grades and prices. ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. They have significant experience in executing projects of the scale and quality required for the Colluli project. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. I am not receiving compensation for it (other than from Seeking Alpha). 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. In 2023, Botswana expects diamond output to decline by 1%. The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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). My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . The company is yet to secure an additional US$52 million of capital. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. 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. Colluli contains three potassium-bearing salts in solid form, namely. 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. This long-lasting tension has led to Eritrea's militarisation. Enter your email below to receive updates on your featured companies right to your inbox. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . Potash is an important fertiliser. 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. 10). All land is considered state-owned and property rights are non-existent. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. This post has been syndicated from a third-party source. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The stock chart of Danakali, modified from this source. 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. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. 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. 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. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). As inflation falls, what can be expected from the Bank of England in the months to come? I have taken a starter position and plan to build a position of meaningful size in the next couple of years. 1. 8. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The project has the world's. 2 0 obj 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. (5) a community of investors to bounce off ideas and share information with. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. The appointment of RA International is testament to sound execution of our growth strategy, highlighting continued new business momentum with another significant award in the mining sector., Your email address will not be published. 6. 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). 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 project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. This geographical advantaged is unique. 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. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 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. Your email address will not be published. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli sites SOP fertiliser production over a 10-year term, from the Projects date of commissioning. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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. 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. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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 government monitors telephone and internet traffic and runs an extensive domestic surveillance system. Afwerki's critics accuse him of using the long-standing border dispute with Ethiopia to avoid implementing Eritreas constitution which was ratified in 1997 and for postponing the first scheduled elections (which were also due in 1997). It describes Eritrea as "a dictatorship in which the media has no rights". 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. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. What are the best countries for cryptocurrency adoption? Image courtesy of Danakali. The company expects to start full commercial production in mid-December 2022. Fertiliser is a key component to ensure world food security in the future. Colluli has significant multi-commodity potential presenting major additional value upside. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. Fig. Eritrea was, until 2018, on the UNs sanctions list. The shortfall of projected and actual global potash capacity, from this source. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Producer of But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Danakali to cash out of Colluli. 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. 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. 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. I have no business relationship with any company whose stock is mentioned in this article. It has had a border war with Ethiopia and a clash along the border with Djibouti. Fig. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. The project has a 200-year lifecycle and is expected to start operating in 2022. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. These include: No poverty, zero hunger, quality View the original article here. 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. Some people have been in national conscription for more than 20 years. The border with Sudan was closed until early 2019 because relations were so bad. The Colluli potash project also involves evaporation ponds, a run-of-mine (ROM) pad, a sewage treatment plant, fuel storage tanks, accommodation camp, workshops, warehouses, and a main administrative building. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. (. 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. Eritrea one of the least accessible countries for humanitarian organisations, Searches, Arrests, and Tension in Eritrea, Eritreas jailed journalist exhibition opens in UK Parliament, Dispute over Patriach splits Norwegian Orthodox church in two, Twenty one years after being jailed, Eritreas independent journalists are remembered in the British Parliament. #goog-gt-tt {display:none !important;} 3. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Looking for a helping hand in the market? 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. 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 open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 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. 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. 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. 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. Mobile data does not exist. The project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. 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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. "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. Potash is the common term for fertiliser forms of the element potassium (K). Standard, granular and soluble products can be produced for distribution to the market. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. 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. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. development of the project, and the expected significant boost to royalties, 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. 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. It also has access to solar, wind and geothermal energy systems the East African rift. Colluli is located in the Danakil Depression . Our people is poor continue!!!! To open fire on your own disabled [people] is pretty appalling.". The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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. providing 10,000 direct and indirect local jobs. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. These authors includeSilver Coast Research, , among others. 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. This project has been viewed 588 times. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). 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. 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. Table 1. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. 4. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. RA, listed . "There is a supportive business environment because mining there is a very strategic industry. Select LanguageChinese (Simplified)EnglishGerman 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. 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. Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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 project is expected to commence production in 2022. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. and then onto production in 2022, Danakali said. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops.
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