Reverso Context-: The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Danakali to use filtered sea water at Colluli potash mine Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The stock seems to be agitating for a breakout in recent weeks (Fig. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash "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. Posted by Daniel Gleeson on 21st August 2020. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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 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. In the initial phase of operation, Wage said, Colluli would A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Required fields are marked *. 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. inequalities, climate action, peace, justice and strong institutions and 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. 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. 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. It has been a Unesco World Heritage Site since 2017. The project is on the Eritrean side of the border, giving Colluli a significant advantage relative to the other potash development projects in the Danakil Depression, which need to ship from the Tadjoura Port in Djibouti over 790km by road from the closest project on the Ethiopian side of the border. 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. 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. as being forecasted back in 2015 has been removed from the supply side (Fig. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Fig. 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. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. According to Reporters Without Borders, only North Korea has less press freedom. 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. It also has access to solar, wind and geothermal energy systems - the East African rift. 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. Colluli - Danakali Limited Danakali Lmited is selling share to China. 6. Colluli has been largely de-risked in terms of. 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. 1. Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. Colluli is the premier greenfield development project globally. 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. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. Disclosure: I am/we are long SBMSF, CMP. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. This project has been viewed 588 times. A big economic change will come to eritrea, proud to be an nseritrea. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . 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. Proudly Researched by: Melanie Miles. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. 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 agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. mine-life. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Colluli Potash Project, Eritrea. 4). 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){}} 10. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. 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. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. "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. 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. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. View the original article here. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. Colluli Potash Mine, Danakali Depression, Eritrea, Eastern Africa #goog-gt-tt {display:none !important;} The government will benefit from the longer-term 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. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. 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. ,and the value is around 67,000.00 . Mining in Eritrea: could a new potash project spur sustainable growth? The project is the only known source of potash that allows extraction of the fertilizer in solid form. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. After the Second World War, it was annexed to Ethiopia. Colluli contains three potassium-bearing salts in solid form, namely. Some people have been in national conscription for more than 20 years. Morgan Leighton. The stock chart of Danakali, modified from this source. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. February 25, 2022. 10). 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 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). Information about Eritrea and the Horn of Africa. 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. 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. The shortfall of projected and actual global potash capacity, from this source. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. In 2023, Botswana expects diamond output to decline by 1%. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. It is estimated to have about 80,000 archaeological sites. I am not receiving compensation for it (other than from Seeking Alpha). On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Potash reserves among the world's largest - Economist Intelligence Unit 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. 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. 5). Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 4. stream development of the project, and the expected significant boost to royalties, The JORC-2012 compliant mineral resource estimate, from this source. 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. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. 1). The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. / Danakali: Colluli Potash Mining Project Eritrea Both are below. 11. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. It has had a border war with Ethiopia and a clash along the border with Djibouti. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 1 0 obj 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. 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. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net I based my assertion of Eritrea being ONE of the most oppressive regimes on a series of reports by human rights advocates such as Human Rights Watch (https://www.hrw.org/world-report/2021/country-chapters/eritrea) as well as sites such as D+C (https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes). Table 1. 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. 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. 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. Danakali (DNK) - Technical Analysis - Crux Investor 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. A port development at Anfile Bay could assist in unlocking this potential. 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.
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