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. and then onto production in 2022, Danakali said. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. taxation and exports, and from jobs and skills and economic development of the Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). 8. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. 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. 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. partnerships for the SDGs. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. It is estimated to have about 80,000 archaeological sites. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. %PDF-1.7 Last Updated on: 01 December 2022. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Posted by Daniel Gleeson on 21st August 2020. 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 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 Colluli potash project is considered one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. It also has access to solar, wind and geothermal energy systems the East African rift. 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. Mining in Eritrea: could a new potash project spur sustainable growth? 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. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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. Fig. 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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). There are 70 Subscribers monitoring this project. 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. 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. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. (5) a community of investors to bounce off ideas and share information with. It describes Eritrea as "a dictatorship in which the media has no rights". It also has access to solar, wind and geothermal energy systems - the East African rift. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. The location of the Colluli potash deposit, from this source. 1). The shortfall of projected and actual global potash capacity, from this source. 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. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. advance its sustainable development agenda, which are 13 priority Sustainable 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. .goog-te-menu-value:hover {text-decoration:none !important;} 6. 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. These alternative producers require substantial lead times to generate their harvest salts for processing. It is actually resistant to the wests oppression in the most pure sense of the term. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. World Class Potash Project In Eritrea Moves Closer To Development - Forbes .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Potash reserves among the world's largest - Economist Intelligence Unit Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. Development Goals (SDGs). Business intelligence for leaders in foreign direct investment. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea.The project is the only known source of potash that allows extraction of the fertilizer in solid form. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australia's Danakali and Eritrean National Mining Corporation (ENAMCO). Annual output RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. it is promising future.for our country and people .Thank God. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Danakali looks into solar, wind to power Eritrea potash project Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, 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. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Colluli Potash Project, Eritrea. region, chief executive Niels Wagetold MINING.COM last year. This post has been syndicated from a third-party source. Has access to the Ethiopian side of the deposit been guaranteed? Across the country, an estimated two-thirds of households are impacted by food insecurity. 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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. "There is a supportive business environment because mining there is a very strategic industry. Sadly, Eritrea looks set to remain a failed state as long as he is in office. Asmara is a beautiful city and awash in colonial Italian architectural gems. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. It also has access to solar, wind and geothermal energy systems the East African rift. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The company expects to start full commercial production in mid-December 2022. 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. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. The stock chart of Danakali, modified from this source. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa 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. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. 6. 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 $121 million cash, of which 90% will be distributed back to shareholders. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 3 0 obj Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertiliser. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Fertiliser is a key component to ensure world food security in the future. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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. 03 October 2022. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. It thus follows we should keep an eye on emerging potash producers. Analysis of the Potential Contributions of Colluli Potash Project to . % Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. stream The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. 2 0 obj These authors includeSilver Coast Research, , among others. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. RA International to set up camp at Colluli sulphate of potash mine AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. February 25, 2022. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. The report also identified how the mine could help Eritrea Colluli is located in the Danakil Depression . Danakali appoints Aggreko as power contractor at Colluli By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy Danakali to cash out of Colluli - Mining Journal If you have an ad-blocker enabled you may be blocked from proceeding. 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. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. SOP in developing regions where the highest rates of population growth are expected, from. 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. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). The company is yet to secure an additional US$52 million of capital. What are the best countries for cryptocurrency adoption? Morgan Leighton. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For Artists impression of the plant at the Colluli project. Danakali: Why This Little-Known Potash Developer Is A Buy Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 7. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. Both are below. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 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. 9). Why isn't Europe investing more in recycling plastic. - - | Reverso Context The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . Notify me of follow-up comments by email. 6. 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. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 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. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Image courtesy of Danakali. 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. Colluli is the premier greenfield development project globally. 1. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Value: R 200 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. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Danakali (DNK) - Technical Analysis. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 2). Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritrea: potash and the pariah state - Investment Monitor The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. As inflation falls, what can be expected from the Bank of England in the months to come? Producer of 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. 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. 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. Profit was boosted by higher metal grades and prices. 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). A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. This long-lasting tension has led to Eritrea's militarisation. 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Looking for a helping hand in the market? The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. Disclosure: I am/we are long SBMSF, CMP. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Fig. RA, listed . Is this happening to you frequently? 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. 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 4 0 obj as being forecasted back in 2015 has been removed from the supply side (Fig. 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 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. 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. US Level 1 ADR . 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. 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. We have recently upgraded our technology platform. In the long run, potash consumption is expected to continue to grow as a result of population expansion. In the initial phase of operation, Wage said, Colluli would second phase of development, as the project has a possible 200-year plus The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Table 1. We use them to give you the best experience. 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.
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