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. Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. The FEED economic estimates, from the same source as Fig. The stock seems to be agitating for a breakout in recent weeks (Fig. This long-lasting tension has led to Eritrea's militarisation. Are the rights of those working on the site ensured, or will they be slaves forced to work on the mine as National Service conscripts? Image courtesy of Danakali. All land is considered state-owned and property rights are non-existent. second phase of development, as the project has a possible 200-year plus After the Second World War, it was annexed to Ethiopia. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. These authors includeSilver Coast Research, , among others. 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. There is also potential for kieserite If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 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. 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. 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. The JORC-2012 compliant ore reserve estimate at Colluli is estimated at 1,100 Mt at 10.5% K2O for 203 Mt of contained SOP equivalent (Fig. The Colluli potash project is expected to commence production in 2022. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. 2 0 obj Our 3 Top Picks. The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. Our people is poor continue!!!! Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Send Me Updates. 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. SOP in developing regions where the highest rates of population growth are expected, from. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Australia's Danakali (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. You are talking about the garbage written by Plaut ? Fig. A United Nations report published in 2019 suggested 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. inequalities, climate action, peace, justice and strong institutions and Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. 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. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Adjusted net income of $0.52 beat the consensus estimate of $0.43. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. (2) live portfolios for both capital appreciation and income generation. Colluli is located in the Danakil Depression . it is promising future.for our country and people .Thank God. Eritrea one of the worlds most repressive and secretive states, known as the North Korea of Africa is poised to disrupt the global supply chain of fertiliser. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. I am not receiving compensation for it (other than from Seeking Alpha). The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} 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.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.The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.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.The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. What are the best countries for cryptocurrency adoption? The deposit stretches across the border into Ethiopia. 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). Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. 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. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Invest in t. All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. A port development at Anfile Bay could assist in unlocking this potential. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Across the country, an estimated two-thirds of households are impacted by food insecurity. Fig. 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). Potash is an important fertiliser. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Please disable your ad-blocker and refresh. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. The development of the Colluli potash projects coincides It describes Eritrea as "a dictatorship in which the media has no rights". 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 project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. 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. Posted by Daniel Gleeson on 21st August 2020. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. Select LanguageChinese (Simplified)EnglishGerman It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. 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. The FEED results and the recent completion of test work and additional verification provide a higher level of financial certainty to project financiers, further de-risking the investment proposition. Image courtesy of Danakali. 1. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. 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. 2). 3. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The UN sanction was lifted by the UN in November 2018 under Resolution 2444, by the EU in the following month, and by the U.S. in May 2019. (5) a community of investors to bounce off ideas and share information with. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. 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. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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. 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 Colluli process is expected to generate a product with a purity of 94.5%. 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. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. The project has the world's. 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 stock chart of Danakali, modified from this source. 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. 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. 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. Table 1. If you have an ad-blocker enabled you may be blocked from proceeding. Sadly, Eritrea looks set to remain a failed state as long as he is in office. The location of the Colluli potash deposit, from this source. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash The shortfall of projected and actual global potash capacity, from this source. Last Updated on: 01 December 2022. 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. 03 October 2022. Colluli is the premier greenfield development project globally. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. In some cases, depending on the ambient conditions, this process can take over two years. 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. Asmara is a beautiful city and awash in colonial Italian architectural gems. 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. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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). 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. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. Danakali to cash out of Colluli. partnerships for the SDGs. The front-end engineering and design (FEED) study for the project was completed in January 2018. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Business intelligence for leaders in foreign direct investment. keyValue[2].split('/')[2] : null;} "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 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. Required fields are marked *. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. I am not receiving compensation for it (other than from Seeking Alpha). By. According to the UNDP report entitled "Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea," Colluli is estimated to attract US$614 million of direct capital investment, generate 3% of Eritrean GDP once module I is up running, and account for 50% of Eritrean Exports by when module II is on stream. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. I wrote this article myself, and it expresses my own opinions. 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. 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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Fig. The best energy and mining stock ideas with multibagger potential. function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;i