With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Sadly, Eritrea looks set to remain a failed state as long as he is in office. 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. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The Colluli process is expected to generate a product with a purity of 94.5%. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). 10). Reminders. Fig. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Fig. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. %
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. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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. 3. The proximity to the coast and the established port infrastructure in the Port of Massawa gives Colluli unrivalled access to global export markets, and it also decreases logistics costs from the mine gate onto the ship estimated at US$73/t. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Danakali explored the use of filtered seawater at Colluli. Colluli is positioned very close to vital potash markets. The UN says forced labour and detention without trial are common. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. 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. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. Plus500. endobj
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. Agnico Eagle's EPS beat expectations; guidance maintained. 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. He is an alone, he is DICTATORSHIP! Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 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. Standard, granular and soluble products can be produced for distribution to the market. 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. keyValue[2].split('/')[2] : null;}
SOP in developing regions where the highest rates of population growth are expected, from. The Project has unrivalled potash product versatility. 2. 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. 1. 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. 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? The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. 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. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. The stock chart of Danakali, modified from this source. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Danakali to cash out of Colluli. This long-lasting tension has led to Eritrea's militarisation. Information about Eritrea and the Horn of Africa. Asmara is a beautiful city and awash in colonial Italian architectural gems. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. They are in deep need. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. 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 wrote this article myself, and it expresses my own opinions. growth and decent work, industry, innovation and infrastructure, reduced Eritrea was, until 2018, on the UNs sanctions list. (2) live portfolios for both capital appreciation and income generation. Fig. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. 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. 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 Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 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 SOP quality spectrum, from the same source as Fig. 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. 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. 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. with the move towards diplomatic relations between the once feuding countries 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 located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. What are my chances of getting my money back? DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . The Colluli potash project is expected to commence production in 2022. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. US Level 1 ADR . Based on what evidence? Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. 4). Fig. (MOP) and gypsum, along with rock salt. as being forecasted back in 2015 has been removed from the supply side (Fig. If you have an ad-blocker enabled you may be blocked from proceeding. 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. Status: Design. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Danakali Lmited is selling share to China. Across the country, an estimated two-thirds of households are impacted by food insecurity. Fig. 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. It has been a Unesco World Heritage Site since 2017. Is this happening to you frequently? The deposit stretches across the border into Ethiopia. The shortfall of projected and actual global potash capacity, from this source. Invest in t. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! Development is already underway with expected production in 2022. By. The project has the world's. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. education, gender equality, clean water and sanitation, sustainable economic 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). 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 plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Many Eritreans hoped that the peace deal with Ethiopia would create economic opportunities for the country, but there is little sign of that happening yet. Australias Danakali (ASX, LON:DNK) said on Thursday it was in the final stages of completing the second phase of developmentof its world-class Colluli potash project in Eritrea, Africa. 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. 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. 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 Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.
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