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The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. The United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. 1). Phase one, involving an estimated capital investment of 220m ($298m), is expected to produce 472,000 tonnes per annum (tpa) of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000tpa of SOP from year six of the project with an additional capital investment of 148m ($202m). The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. It also said that all vendor and contractor packages have now been received. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. The UN says forced labour and detention without trial are common. Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business The best energy and mining stock ideas with multibagger potential. Simplified process flow for the production of SOP from the Colluli resource, from this source. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at The cost curve of SOP production as of 2018, from the same source as Fig. 3 0 obj The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. 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. stream Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 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. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? In 2023, Botswana expects diamond output to decline by 1%. 3). Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. It has been a Unesco World Heritage Site since 2017. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. There are many sources of potassium, including. Fig. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net providing 10,000 direct and indirect local jobs. 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. Muriate of potash, i.e., MOP (KCl; 0-0-60), which is used for wheat, corn, and other chloride-tolerant crops; Sulfate of potash or SOP (K2SO4; 0-0-50-18S), which also supplies both potassium and sulfur for high yields and quality; Potassium-magnesium sulfate, i.e., SOP-M (K2SO4-2MgSO4; 0-0-22-22S-11Mg) used as specialty fertilizer; Potassium thiosulfate (K2S2O3; 0-0-25-17S); and, Potassium nitrate (KNO3; 13-0-44) used for chloride sensitive crops that require additional nitrogen (see. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. All primary production of potassium sulphate from kainitite worldwide commence with low potassium content brines, which require substantial solar evaporation to generate a harvest salt for subsequent processing. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Profit was boosted by higher metal grades and prices. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. .goog-te-menu-value:hover {text-decoration:none !important;} World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Colluli has significant multi-commodity potential presenting major additional value upside. The mineralization in the Colluli deposit starts at just 16m, making it the shallowest known potash deposit in the world, and thus amenable to low-cost, open-cut mining. 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. 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". The document estimated that Colluli would contribute 3% of Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. Fig. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Journalists say that getting any information out of the country is extremely difficult. development of the project, and the expected significant boost to royalties, 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. Both are below. 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. We have recently upgraded our technology platform. Construction nears at Colluli potash project following Eritrea ministry The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Colluli has been largely de-risked in terms of geopolitics, infrastructure, off-take, and financing, with the module I scheduled to come on-stream in 2022. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a The location of the Colluli potash deposit, from this source. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. Development Goals (SDGs). As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. The asset has the potential to produce other fertilizer These circumstances have resulted in it becoming one of the most isolated states in the world. endobj Fig. Danakali to start developing vast potash project in Eritrea phosphorus mines in usa 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). It also has access to solar, wind and geothermal energy systems the East African rift. 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. The front-end engineering and design (FEED) study for the project was completed in January 2018. Danakali explored the use of filtered seawater at Colluli. 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. (5) a community of investors to bounce off ideas and share information with. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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. 8. 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. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. In some cases, depending on the ambient conditions, this process can take over two years. After the Second World War, it was annexed to Ethiopia. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Across the country, an estimated two-thirds of households are impacted by food insecurity. Colluli is located in the Danakil Depression . 2). The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). It then plans to distribute 90% of the net proceeds to shareholders and will continue as a listed company to identify new projects and potential new alternative growth opportunities. 4. It also has access to solar, wind and geothermal energy systems the East African rift. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Danakali closer to getting Eritrea potash project off the ground - - | Reverso Context 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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, 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. I think you should research about th e author. 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. Select LanguageChinese (Simplified)EnglishGerman In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. View the original article here. Image courtesy of Danakali. 86% of retail CFD accounts lose money. 5). 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. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. Colluli has been largely de-risked in terms of. 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. Best. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. 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. Mobile data does not exist. Looking for a helping hand in the market? The deposit is located in the Danakil depression region of Eritrea, about 75km away from the Red Sea coast and 177km south-east of Asmara, the capital city (with a population of 960,000 people). Fig. The border with Sudan was closed until early 2019 because relations were so bad. 4. The report also identified how the mine could help Eritrea The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Enter your email below to receive updates on your featured companies right to your inbox. function GTranslateFireEvent(element,event){try{if(document.createEventObject){var evt=document.createEventObject();element.fireEvent('on'+event,evt)}else{var evt=document.createEvent('HTMLEvents');evt.initEvent(event,true,true);element.dispatchEvent(evt)}}catch(e){}} What Are the Best Fertilizer Stocks? At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . 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. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. The agreement can be further extended by three years if mutually agreed upon. The deposit stretches across the border into Ethiopia. 2. Danakali: Why This Little-Known Potash Developer Is A Buy The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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 . Analysis of the Potential Contributions of Colluli Potash Project to The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. I have no business relationship with any company whose stock is mentioned in this article. 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 front-end engineering and design (FEED) study for the project was completed in January 2018. I have no business relationship with any company whose stock is mentioned in this article. Annual output A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The government will benefit from the longer-term In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. 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. endobj Fig. 11). On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? 2 0 obj RA International to set up camp at Colluli sulphate of potash mine Please disable your ad-blocker and refresh. There are 70 Subscribers monitoring this project. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. This geographical advantaged is unique. What are my chances of getting my money back? <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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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. 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. (MOP) and gypsum, along with rock salt. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. "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.