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9). 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. 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. 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. 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. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. The Danakil Depression, which extends over 300km into eastern Ethiopia, hosts over 6,000 Mt of potassium-bearing salts suitable for the production of potash fertilizers. 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. This project has been viewed 588 times. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The Colluli Potash Project (Project, Colluli ) is 100%. 86% of retail CFD accounts lose money. 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. Danakali Lmited is selling share to China. Danakali to cash out of Colluli. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Posted by Daniel Gleeson on 21st August 2020. 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. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Danakali explored the use of filtered seawater at Colluli. There is also potential for kieserite Fig. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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. Danakali rates 2022 potash target unlikely as "all options - Miningmx 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. Danakali appoints Aggreko as power contractor at Colluli 3). ,and the value is around 67,000.00 . 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. keyValue[2].split('/')[2] : null;} It is estimated to have about 80,000 archaeological sites. He is an alone, he is DICTATORSHIP! 6. 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. 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. finished in June, will take the company a step closer to the construction phase The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. February 25, 2022. 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. #goog-gt-tt {display:none !important;} 4 0 obj 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. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. 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. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. Colluli contains three potassium-bearing salts in solid form, namely. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. I have no business relationship with any company whose stock is mentioned in this article. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. 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. (5) a community of investors to bounce off ideas and share information with. 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. The JORC-2012 compliant mineral resource estimate, from this source. 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. Flour was awarded the FEED contract for the Colluli potash project in January 2017. 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. The cost curve of SOP production as of 2018, from the same source as Fig. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. development of the project, and the expected significant boost to royalties, Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Danakali closer to getting Eritrea potash project off the ground It thus follows we should keep an eye on emerging potash producers. One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). as being forecasted back in 2015 has been removed from the supply side (Fig. 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. The front-end engineering design (FEED), expected to be As inflation falls, what can be expected from the Bank of England in the months to come? .goog-te-banner-frame {display:none !important;} 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. 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. The shortfall of projected and actual global potash capacity, from this source. Fertiliser is a key component to ensure world food security in the future. The location of the Colluli potash deposit, from this source. 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 (. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Is this happening to you frequently? Invest in t. The FEED economic estimates, from the same source as Fig. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Please. Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. 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. Image courtesy of Danakali. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The front-end engineering and design (FEED) study for the project was completed in January 2018. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. This geographical advantaged is unique. It is actually resistant to the wests oppression in the most pure sense of the term. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. (. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 3. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . with the move towards diplomatic relations between the once feuding countries Information about Eritrea and the Horn of Africa. 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. Construction nears at Colluli potash project following Eritrea ministry and mag chloride to be commercialized with minimal further processing required. 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. 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 1. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: (2) live portfolios for both capital appreciation and income generation. 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. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Eritrea Archives - International Mining These authors includeSilver Coast Research, , among others. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! Additional details about the agreement are available in the following announcement >>. 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). Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. 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. The report also identified how the mine could help Eritrea Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . 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. 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. Reminders. second phase of development, as the project has a possible 200-year plus A two-and-a-half-year border war between Ethiopia and Eritrea ended in June 2000 and was followed by about eight years of heightened tension and hostility between the two countries. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 2. Danakali to sell stake in flagship Colluli potash project in Eritrea I am not receiving compensation for it (other than from Seeking Alpha). Colluli Potash Project, Eritrea. We use them to give you the best experience. 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. Please disable your ad-blocker and refresh. 3 0 obj (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . 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. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. The asset has the potential to produce other fertilizer 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. Danakali eyes finish line for Eritrea potash project There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. M&A: Mining Finance | Mining Journal 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. 7. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. 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. Some people have been in national conscription for more than 20 years. 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 . He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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 country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at