Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Danakali to cash out of Colluli. Looking for a helping hand in the market? Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. ,and the value is around 67,000.00 . The Project has unrivalled potash product versatility. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. second phase of development, as the project has a possible 200-year plus and mag chloride to be commercialized with minimal further processing required. produce more than 472,000 tonnes a year of Sulphate of Potash. I have no business relationship with any company whose stock is mentioned in this article. All land is considered state-owned and property rights are non-existent. According to Reporters Without Borders, only North Korea has less press freedom. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. These include: No poverty, zero hunger, quality The border with Sudan was closed until early 2019 because relations were so bad. The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. 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. 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. Image courtesy of Danakali. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 10). stream Fig. Fig. In 2023, Botswana expects diamond output to decline by 1%. 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. The deposit is the only one in the world world where SOP can be made from an open-cut mine due to its extreme shallowness. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Producer of .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 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. It also has access to solar, wind and geothermal energy systems the East African rift. The project has the world's. The Colluli process is expected to generate a product with a purity of 94.5%. inequalities, climate action, peace, justice and strong institutions and The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. We need a bit of money.' However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Colluli is positioned very close to vital potash markets. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). Fig. 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. Development Goals (SDGs). In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. <> 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. Disclosure: I am/we are long SBMSF, CMP. 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). The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Standard, granular and soluble products can be produced for distribution to the market. with the move towards diplomatic relations between the once feuding countries We have recently upgraded our technology platform. 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. 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. Last Updated on: 01 December 2022. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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. 9). There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). There is also potential for kieserite (. The agreement can be further extended by three years if mutually agreed upon. 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. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The SOP quality spectrum, from the same source as Fig. 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. Potash is an important fertiliser. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. The stock seems to be agitating for a breakout in recent weeks (Fig. The government will benefit from the longer-term Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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 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, 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. 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. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. To open fire on your own disabled [people] is pretty appalling.". 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. (5) a community of investors to bounce off ideas and share information with. 1 0 obj Profit was boosted by higher metal grades and prices. Colluli is the premier greenfield development project globally. Flour was awarded the FEED contract for the Colluli potash project in January 2017. In the long run, potash consumption is expected to continue to grow as a result of population expansion. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. Simplified process flow for the production of SOP from the Colluli resource, from this source. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. February 25, 2022. 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. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). mine-life. Development is already underway with expected production in 2022. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Based on what evidence? 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.. The country with an estimated $2.48bn economy and 3.6 million inhabitants has been ruled with an iron fist by its dictator President Isaias Afwerki, now aged 75 since he led it to independence from Ethiopia in 1993. At mine-gate production costs of US$149-165/t or total cash costs of US$242-258/t, Colluli can be profitable even at the current low SOP price of US$500-650/t. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash At a forward P/FCF multiple of 2.6X for Module I (2022-) and 1.3X once Module II comes on-stream in 2028, Danakali appears to be undervalued.