Click HERE for a free trial now. Fertiliser is a key component to ensure world food security in the future. Information about Eritrea and the Horn of Africa. Potash reserves among the world's largest - Economist Intelligence Unit 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,. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> taxation and exports, and from jobs and skills and economic development of the ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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 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. body {top:0 !important;} Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. endobj 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. What Are the Best Fertilizer Stocks? Why isn't Europe investing more in recycling plastic. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. #goog-gt-tt {display:none !important;} US Level 1 ADR . 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. He is an alone, he is DICTATORSHIP! They have significant experience in executing projects of the scale and quality required for the Colluli project. 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. In 2023, Botswana expects diamond output to decline by 1%. 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. Standard, granular and soluble products can be produced for distribution to the market. Colluli Potash Project, Danakil - Mining Technology Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. RA, listed . Is this happening to you frequently? RA International to set up camp at Colluli sulphate of potash mine Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). 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. The deposit stretches across the border into Ethiopia. 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. Potash is the common term for fertiliser forms of the element potassium (K). and mag chloride to be commercialized with minimal further processing required. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: "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. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. Geothermal an energy option for Colluli mining project in Eritrea 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). I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Invest in t. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. Development is already underway with expected production in 2022. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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 Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. Reminders. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. Across the country, an estimated two-thirds of households are impacted by food insecurity. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? The asset has the potential to produce other fertilizer (2) live portfolios for both capital appreciation and income generation. Colluli Potash Project - MBS Environmental In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. 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. M&A: Mining Finance | Mining Journal Danakali (DNK) - Technical Analysis. This long-lasting tension has led to Eritrea's militarisation. Danakali to use filtered sea water at Colluli potash mine 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. 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. There is also potential for kieserite Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Notify me of follow-up comments by email. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. These alternative producers require substantial lead times to generate their harvest salts for processing. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Danakali to sell stake in flagship Colluli potash project in Eritrea Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 1. advance its sustainable development agenda, which are 13 priority Sustainable Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. The project has a 200-year lifecycle and is expected to start operating in 2022. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Reverso Context-: The JORC-2012 compliant mineral resource estimate, from this source. Eritrea's potash mining takes shape but questions remain Please disable your ad-blocker and refresh. 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. 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. 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. Fig. It also has access to solar, wind and geothermal energy systems the East African rift. 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. 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. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a By. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 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. 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. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/). EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. There are 70 Subscribers monitoring this project. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The border with Sudan was closed until early 2019 because relations were so bad. 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. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. / Danakali: Colluli Potash Mining Project Eritrea 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. I wrote this article myself, and it expresses my own opinions. (. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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 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. Last Updated on: 01 December 2022. 3). 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. SOP in developing regions where the highest rates of population growth are expected, from. 3). This post has been syndicated from a third-party source. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The Project has unrivalled potash product versatility. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 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. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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. Artists impression of the plant at the Colluli project. 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. These circumstances have resulted in it becoming one of the most isolated states in the world. They are in deep need. 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. Best. %PDF-1.7 6. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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). "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 Potash Project Aspires to 'Meaningfully' Advance Eritrea's
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