colluli potash project in eritrea 2022

,and the value is around 67,000.00 . 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. Colluli Potash Project, Eritrea. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Danakali to cash out of Colluli. (MOP) and gypsum, along with rock salt. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. You are talking about the garbage written by Plaut ? 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. Danakali (DNK) - Technical Analysis. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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). I wrote this article myself, and it expresses my own opinions. 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. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 6. It describes Eritrea as "a dictatorship in which the media has no rights". Potash historical demand trends by region, from this source. I have no business relationship with any company whose stock is mentioned in this article. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. In 2023, Botswana expects diamond output to decline by 1%. 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). Danakali to sell stake in flagship Colluli potash project in Eritrea The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. 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. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. 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. Danakali (DNK) - Technical Analysis - Crux Investor (5) a community of investors to bounce off ideas and share information with. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. 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. 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. 4 0 obj 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. it is promising future.for our country and people .Thank God. 11. 4. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. mine-life. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Journalists say that getting any information out of the country is extremely difficult. Send Me Updates. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Potash is an important fertiliser. Fig. He is an alone, he is DICTATORSHIP! Notify me of follow-up comments by email. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Under the current FEED study for Module 1 and 2, Danakali will be one of the lowest cost SOP producers and with the development of the loading facility at Anfile Bay costs will decrease further as transportation costs are reduced. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. These authors includeSilver Coast Research, , among others. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. 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. Fig. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). 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. 7. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. It also has access to solar, wind and geothermal energy systems the East African rift. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters 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. Is this happening to you frequently? Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 4. development of the project, and the expected significant boost to royalties, 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. 3). Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Simplified process flow for the production of SOP from the Colluli resource, from this source. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: Eritrea is bordered by Sudan in the west, Ethiopia in the south and Djibouti in the south-east, and it has a 1,150km coastline along the Red Sea. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Enter your email below to receive updates on your featured companies right to your inbox. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. 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). #google_translate_element2 {display:none!important;} function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Danakali rates 2022 potash target unlikely as "all options - Miningmx In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. 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. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Invest in t. 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. 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. Eritrea was, until 2018, on the UNs sanctions list. 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 Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). I have no business relationship with any company whose stock is mentioned in this article. RA International to set up camp at Colluli sulphate of potash mine The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Mobile data does not exist. 1). <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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){}} 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. Fertiliser is a key component to ensure world food security in the future. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? (. Approximately 4 tonnes of Colluli drill core material have been processed at the Saskatchewan Research Council (SRC) in Canada by way of specific bench testing which has been extremely successful. 9). 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/). It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. It thus follows we should keep an eye on emerging potash producers. We need a bit of money.' 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. Reverso Context-: Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. This long-lasting tension has led to Eritrea's militarisation. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Danakali closer to getting Eritrea potash project off the ground The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. % It also has access to solar, wind and geothermal energy systems - the East African rift. 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. 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. "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. taxation and exports, and from jobs and skills and economic development of the DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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 fertilizer. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Geothermal an energy option for Colluli mining project in Eritrea 03 October 2022. Fig. 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). Many Eritreans hoped that the peace deal with Ethiopia would create economic opportunities for the country, but there is little sign of that happening yet. The project has a 200-year lifecycle and is expected to start operating in 2022. We have recently upgraded our technology platform. second phase of development, as the project has a possible 200-year plus 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. Last Updated on: 01 December 2022. I wrote this article myself, and it expresses my own opinions. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. the countrys GDP by 2021 and 50% of the nations exports by 2030, while The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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.