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. 5). Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. In the initial phase of operation, Wage said, Colluli would 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. Please. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. According to Reporters Without Borders, only North Korea has less press freedom. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. It assesses a wide range of econometric data and includes findings . #google_translate_element2 {display:none!important;} The company expects to start full commercial production in mid-December 2022. 03 October 2022. 3. 7. 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. "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. Colluli is located in the Danakil Depression . 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. 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 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. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. 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). On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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.. 2. The front-end engineering and design (FEED) study for the project was completed in January 2018. 6. The development of the Colluli potash projects coincides 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. 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. Colluli Mining Share Company secured 165m ($200m) of senior debt finance from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) in August 2019. 10. .goog-te-menu-value:hover {text-decoration:none !important;} The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. The resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. 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. 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. After the Second World War, it was annexed to Ethiopia. We need a bit of money.' Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Fig. 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The Colluli process is expected to generate a product with a purity of 94.5%. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. .goog-te-banner-frame {display:none !important;} The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. Simplified process flow for the production of SOP from the Colluli resource, from this source. 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. Our 3 Top Picks. We use them to give you the best experience. Both are below. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. 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. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The government will benefit from the longer-term Colluli contains three potassium-bearing salts in solid form, namely. 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. development of the project, and the expected significant boost to royalties, DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . 2 0 obj <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Fig. 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). Notify me of follow-up comments by email. It also has access to solar, wind and geothermal energy systems the East African rift. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at 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. The company is yet to secure an additional US$52 million of capital. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. 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. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. You are talking about the garbage written by Plaut ? Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. 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. The project has the world's. This project has been viewed 588 times. 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 benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. (MOP) and gypsum, along with rock salt. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. The Colluli potash project is considered one of the world's 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. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 1. 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. endobj A port development at Anfile Bay could assist in unlocking this potential. 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. Enter your email below to receive updates on your featured companies right to your inbox. The asset has the potential to produce other fertilizer A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 6. Fig. The UN says forced labour and detention without trial are common. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Here Are 10 Other Analyst Forecasts For Tuesday, Berenberg Bank Sticks to Their Buy Rating for Nutrien (NTR), Registration on or use of this site constitutes acceptance of our. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. body {top:0 !important;} GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. Disclosure: I am/we are long SBMSF, CMP. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). 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). growth and decent work, industry, innovation and infrastructure, reduced