The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. 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. 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. The project has a 200-year lifecycle and is expected to start operating in 2022. He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. The project is the only known source of potash that allows extraction of the fertilizer in solid form. I wrote this article myself, and it expresses my own opinions. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. partnerships for the SDGs. 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,. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. The JORC-2012 compliant mineral resource estimate, from this source. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. it is promising future.for our country and people .Thank God. 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continued new business momentum with another significant award in the mining sector., Your email address will not be published. I am not receiving compensation for it (other than from Seeking Alpha). as being forecasted back in 2015 has been removed from the supply side (Fig. region, chief executive Niels Wagetold MINING.COM last year. 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. What Are the Best Fertilizer Stocks? Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. US Level 1 ADR . 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. 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. 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. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Posted by Daniel Gleeson on 21st August 2020. 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. Potash is the common term for fertiliser forms of the element potassium (K). Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. 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. 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. "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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> The Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Only 1% of the population has access to the internet, according to the World Bank. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. 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. 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. 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. 10. It is actually resistant to the wests oppression in the most pure sense of the term. The best energy and mining stock ideas with multibagger potential. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 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. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. All land is considered state-owned and property rights are non-existent. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. 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. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. Agnico Eagle's EPS beat expectations; guidance maintained. Our people is poor continue!!!! The Colluli Potash Project (Project, Colluli ) is 100%. Image courtesy of Danakali. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Sadly, Eritrea looks set to remain a failed state as long as he is in office. A big economic change will come to eritrea, proud to be an nseritrea. The government will benefit from the longer-term DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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. Based on what evidence? Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Danakali Lmited is selling share to China. 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. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 7. 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 . Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. The shortfall of projected and actual global potash capacity, from this source. 6. inequalities, climate action, peace, justice and strong institutions and 3 0 obj Colluli contains three potassium-bearing salts in solid form, namely. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. There is also potential for kieserite Colluli is the premier greenfield development project globally. I wrote this article myself, and it expresses my own opinions. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. 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. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. Annual output The Danakil Depression is an emerging potash province in Eritrea and 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. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report.