colluli potash project in eritrea 2022

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. Simplified process flow for the production of SOP from the Colluli resource, from this source. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. The development of the Colluli potash projects coincides 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. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 4. 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. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 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. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. There is also potential for kieserite Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. 11). 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. 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. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. This project has been viewed 588 times. Last Updated on: 01 December 2022. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. Colluli is the premier greenfield development project globally. 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. This geographical advantaged is unique. ColluliMining Share company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining Corporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. 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. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 6. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. 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. (. The three key objectives set for the second phase of development included updating the capital estimate, project schedule and identifying key test work required to move into Phase 3. 1 0 obj endobj 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;} Journalists say that getting any information out of the country is extremely difficult. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. as being forecasted back in 2015 has been removed from the supply side (Fig. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. Producer of products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash 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. Information about Eritrea and the Horn of Africa. Fig. 7. Morgan Leighton. #google_translate_element2 {display:none!important;} Your email address will not be published. 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. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. 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. Across the country, an estimated two-thirds of households are impacted by food insecurity. The government will benefit from the longer-term Has access to the Ethiopian side of the deposit been guaranteed? mine-life. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Colluli is only 75km from the Red Sea coast, 87km from a port planned at the Anfile Bay, and 230km from the existing Port of Massawa, making it the SOP deposit closest to a coastline and giving it an advantage over competing projects in neighboring Ethiopia, such as the Yara Dallol project of Yara International ASA (. Fig. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. As the commodity supercycle unfolds, you are invited to join The Natural Resources Hub today to take advantage of a slew of generational opportunities alongside Laurentian Research. Colluli Potash Project, Eritrea. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Table 1. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. 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 operating environment weighed heavily on Danakalis decision, as Eritrea is ruled by one of the worldsmost oppressive regimes and was until 2018 on the UNs sanctions list. The Colluli potash project is expected to commence production in 2022. Fig. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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). View the original article here. 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. RA, listed . Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Posted by Daniel Gleeson on 21st August 2020. Colluli is positioned very close to vital potash markets. The project is estimated to have a net present value of $902m and an internal rate of return of 29.9%, according to the London Stock Exchange. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 6. 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. Over the past two decades, many hundreds of thousands of Eritreans have fled military conscription and economic uncertainty in their home country and Eritrea has become a major source of migrants and refugees to Europe, in particular to Sweden, Germany and the Netherlands. 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). 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 . To open fire on your own disabled [people] is pretty appalling.". 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. SOP in developing regions where the highest rates of population growth are expected, from. Our 3 Top Picks. 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 estimated at US$73/t. (MOP) and gypsum, along with rock salt. Click HERE for a free trial now. 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). The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. 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. 4. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. 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. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli sites SOP fertiliser production over a 10-year term, from the Projects date of commissioning. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. 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 fertiliser. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Enter your email below to receive updates on your featured companies right to your inbox. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. This long-lasting tension has led to Eritrea's militarisation. The company is yet to secure an additional US$52 million of capital. second phase of development, as the project has a possible 200-year plus Plus500. (. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. It also said that all vendor and contractor packages have now been received. 10). 2 0 obj 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. I wrote this article myself, and it expresses my own opinions. 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. It also has access to solar, wind and geothermal energy systems the East African rift. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Whilst SOP demand is population growth story it is more of an economic growth story and the African continent is seen to be where the majority of the worlds economic growth will occur in the coming decades. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. It has had a border war with Ethiopia and a clash along the border with Djibouti. Standard, granular and soluble products can be produced for distribution to the market. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The best energy and mining stock ideas with multibagger potential. The location of the Colluli potash deposit, from this source. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. finished in June, will take the company a step closer to the construction phase Select LanguageChinese (Simplified)EnglishGerman The project is the only known source of potash that allows extraction of the fertilizer in solid form. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1).

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