Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Danakali to use filtered sea water at Colluli potash mine 6. Has access to the Ethiopian side of the deposit been guaranteed? In 2023, Botswana expects diamond output to decline by 1%. finished in June, will take the company a step closer to the construction phase 11. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. 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,. As inflation falls, what can be expected from the Bank of England in the months to come? Looking for a helping hand in the market? Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Please disable your ad-blocker and refresh. At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. There are many sources of potassium, including. 5). It describes Eritrea as "a dictatorship in which the media has no rights". A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. Shallowest known evaporite deposit globally. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. This geographical advantaged is unique. 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.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.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.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 project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 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. The stock seems to be agitating for a breakout in recent weeks (Fig. (. Disclosure: I am/we are long SBMSF, CMP. Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). Thank you for your comment. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. Colluli is the premier greenfield development project globally. 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. 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. 03 October 2022. . The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 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. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? In 2023, Botswana expects diamond output to decline by 1%. PDF The Colluli Potash Project Project, Colluli) Quarterly Report CMSC, For Plus500. It assesses a wide range of econometric data and includes findings . 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. The report also identified how the mine could help Eritrea Your email address will not be published. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". % 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. 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. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Only 1% of the population has access to the internet, according to the World Bank. All land is considered state-owned and property rights are non-existent. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. Eritrea Archives - International Mining 4. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Geothermal an energy option for Colluli mining project in Eritrea Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Fig. Is this happening to you frequently? Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Value: R 200 Million+. Status: Design. Sadly, Eritrea looks set to remain a failed state as long as he is in office. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. There are 70 Subscribers monitoring this project. body {top:0 !important;} MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). 86% of retail CFD accounts lose money. inequalities, climate action, peace, justice and strong institutions and The company expects to start full commercial production in mid-December 2022. the countrys GDP by 2021 and 50% of the nations exports by 2030, while 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. 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. Notify me of follow-up comments by email. The deposit stretches across the border into Ethiopia. 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. Colluli Potash Project - MBS Environmental Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Fertiliser is a key component to ensure world food security in the future. The Project has unrivalled potash product versatility. We have recently upgraded our technology platform. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. 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). 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. 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% . - - | Reverso Context To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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 (. 8. EuroChem will purchase the entire SOP output of the Colluli phase one potash project under a 10-year binding off-take agreement signed in June 2018. The cost curve of SOP production as of 2018, from the same source as Fig. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. "In the beginning, things were fine, but gradually it became clear to President Isaias [Afwerki], who led the independence struggle for 30 years, that things were not going the way he expected them to," said Martin Plaut, the former Africa Editor of the BBCs World Service, in an interview in 2019. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. 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. Profit was boosted by higher metal grades and prices. Journalists say that getting any information out of the country is extremely difficult. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. 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. 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 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. Fig. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Danakali to sell stake in flagship Colluli potash project in Eritrea .goog-te-menu-value:hover {text-decoration:none !important;} They are in deep need. This post has been syndicated from a third-party source. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. 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. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Danakali explored the use of filtered seawater at Colluli. mine-life. 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. "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. 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 $121 million cash, of which 90% will be distributed back to shareholders. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. These circumstances have resulted in it becoming one of the most isolated states in the world. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). The water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. Danakali to sell stake in flagship Colluli potash project in Eritrea EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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. Ok as claimed above I dure hope the dictatorship in place will be nice enough this time around to be honest and work for the sake of the people and show the truth about the budgetary issues to the public unlike what the dictatorship did on the gold mining sector.we Eritreans cannot wait to see the benefits of the potash industry on projects that will enhance peoples living standards and create a sustainable economic growth as stipulated on the government sustainable development goals and agendatime only will tell if the dictatorship will have a changing to work for the betterment of the country but not gew clicks. The Colluli Potash Project (Project, Colluli ) is 100%. 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. Select LanguageChinese (Simplified)EnglishGerman Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). 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 Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Best. Table 1. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. as being forecasted back in 2015 has been removed from the supply side (Fig. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Construction nears at Colluli potash project following Eritrea ministry The location of the Colluli potash deposit, 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. 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. advance its sustainable development agenda, which are 13 priority Sustainable The stock chart of Danakali, modified from this source. 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 wrote this article myself, and it expresses my own opinions. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. 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. According to Reporters Without Borders, only North Korea has less press freedom. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. 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. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. I think you should research about th e author. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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. 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. PDF owned by For personal use only 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. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. It then plans to distribute 90% of the net proceeds to shareholders and will continue as a listed company to identify new projects and potential new alternative growth opportunities.
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