It thus follows we should keep an eye on emerging potash producers. Danakali eyes finish line for Eritrea potash project could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 3 0 obj The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. 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. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} The Colluli project requires low upfront development costs and is highly scalable for long-life production. Danakali to sell stake in flagship Colluli potash project in Eritrea 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. 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. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? Geothermal an energy option for Colluli mining project in Eritrea Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. Eritrea's north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. as being forecasted back in 2015 has been removed from the supply side (Fig. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. 11. 4). He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. Danakali looks into solar, wind to power Eritrea potash project Based on what evidence? 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. Shareholders are slated to . Fig. Colluli - Danakali Limited 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. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 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). 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 Report was undertaken during 2018 by senior economists on behalf of the UNDP. 4. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 7. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. "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. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. The UN says forced labour and detention without trial are common. #google_translate_element2 {display:none!important;} Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 8. Colluli has been largely de-risked in terms of. Danakali appoints Aggreko as power contractor at Colluli This project has been viewed 588 times. 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. The company expects to start full commercial production in mid-December 2022. It also has access to solar, wind and geothermal energy systems - the East African rift. The government will benefit from the longer-term A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 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. 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. Some abridged samples of my writings are published here, while 4X as many unabridged articles are posted without delay at TNRH, a popular Seeking Alpha Marketplace service, where you also find: (1) a stream of high-alpha actionable investment ideas. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. The document estimated that Colluli would contribute 3% of - - | Reverso Context The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Profit was boosted by higher metal grades and prices. Image courtesy of Danakali. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Send Me Updates. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. 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. In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. region, chief executive Niels Wagetold MINING.COM last year. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Value: R 200 Million+. There are many sources of potassium, including. 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.