Colluli contains three potassium-bearing salts in solid form, namely. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. The project has a 200-year lifecycle and is expected to start operating in 2022. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The Colluli process is expected to generate a product with a purity of 94.5%. The FEED economic estimates, from the same source as Fig. The deposit stretches across the border into Ethiopia. Development is already underway with expected production in 2022. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Disclosure: I am/we are long SBMSF, CMP. What are my chances of getting my money back? Danakali to cash out of Colluli. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. The Colluli resource contains kainitite, sylvinite and carnallitite ores. It assesses a wide range of econometric data and includes findings . taxation and exports, and from jobs and skills and economic development of the A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Shareholders are slated to . advance its sustainable development agenda, which are 13 priority Sustainable As inflation falls, what can be expected from the Bank of England in the months to come? The company expects to start full commercial production in mid-December 2022. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. 4. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} 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. Copyright 2023, All Rights Reserved | Alphastox | Proudly Hosted by, Danakali to sell stake in flagship Colluli potash project in Eritrea, Canada Nickel develops new method for accelerated carbon capture, Patriot Battery Metals drills nine holes at Corvette, Metso Outotec expands digital grinding inspections with acquisition of Global Physical, Fatal accident at Ivanhoes Kamoa-Kakula mine in Congo. Asmara is a beautiful city and awash in colonial Italian architectural gems. Reverso Context-: 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 Report was undertaken during 2018 by senior economists on behalf of the UNDP. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The Colluli project requires low upfront development costs and is highly scalable for long-life production. partnerships for the SDGs. 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. mine-life. The document estimated that Colluli would contribute 3% of I wrote this article myself, and it expresses my own opinions. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. 11). Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 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. The Colluli potash project is expected to commence production in 2022. 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. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Enter your email below to receive updates on your featured companies right to your inbox. 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. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. We use them to give you the best experience. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. It also has access to solar, wind and geothermal energy systems the East African rift. Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. 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 . The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). It has had a border war with Ethiopia and a clash along the border with Djibouti. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Table 1. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. 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. Simplified process flow for the production of SOP from the Colluli resource, from this source. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Information about Eritrea and the Horn of Africa. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 6. February 25, 2022. 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). 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. 2 0 obj In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. 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. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritreas key import/export facility. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. 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 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. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. Flour was awarded the FEED contract for the Colluli potash project in January 2017. 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. as being forecasted back in 2015 has been removed from the supply side (Fig. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Looking for a helping hand in the market? A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. 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 is 75km from the Red Sea coast, providing unrivalled future logistics potential. 3). One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. Our people is poor continue!!!! 3 0 obj "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. Danakali Lmited is selling share to China. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. 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. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 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 world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. In 2023, Botswana expects diamond output to decline by 1%. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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 UN says forced labour and detention without trial are common. The front-end engineering and design (FEED) study for the project was completed in January 2018. The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). A port development at Anfile Bay could assist in unlocking this potential. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. 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. 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". 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). He is an alone, he is DICTATORSHIP! All land is considered state-owned and property rights are non-existent. These include: No poverty, zero hunger, quality Profit was boosted by higher metal grades and prices. Danakali explored the use of filtered seawater at Colluli. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 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. 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. According to Reporters Without Borders, only North Korea has less press freedom. Fig. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Value: R 200 Million+. Potash historical demand trends by region, from this source. "There is a supportive business environment because mining there is a very strategic industry. The FEED results and the recent completion of test work and additional verification provide a higher level of financial certainty to project financiers, further de-risking the investment proposition. Das wrde mich fr Eritrea sehr freuen und hoffe das es den Menschen dort zugute kommt.Ich liebe dieses Land zumal meine Tochter einen eritreischen Vater hat.. 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. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. "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. 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. function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;i