The front-end engineering design (FEED), expected to be It has been a Unesco World Heritage Site since 2017. Please. RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. as being forecasted back in 2015 has been removed from the supply side (Fig. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Posted by Daniel Gleeson on 21st August 2020. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. It has had a border war with Ethiopia and a clash along the border with Djibouti. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 3). The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . The agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. If you have an ad-blocker enabled you may be blocked from proceeding. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. 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. Colluli is located in the Danakil Depression . It also contains other fertilizer products, such as muriate of potash (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. Eritrea one of the least accessible countries for humanitarian organisations, Searches, Arrests, and Tension in Eritrea, Eritreas jailed journalist exhibition opens in UK Parliament, Dispute over Patriach splits Norwegian Orthodox church in two, Twenty one years after being jailed, Eritreas independent journalists are remembered in the British Parliament. development of the project, and the expected significant boost to royalties, Only 1% of the population has access to the internet, according to the World Bank. The stock seems to be agitating for a breakout in recent weeks (Fig. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. 2 0 obj 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. I think you should research about th e author. I wrote this article myself, and it expresses my own opinions. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). This post has been syndicated from a third-party source. To the southeast of the teeming herds of wildlife in the Okavango Delta inBotswana, an offshoot of the Lundinminingdynasty is extending its search for the worlds biggestdiamonds. 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. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. The project has now obtained all licenses and permits within the license area and has also been granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli mining license area. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. keyValue[2].split('/')[2] : null;} 5). 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% . Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The Project has unrivalled potash product versatility. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. 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. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Shallowest known evaporite deposit globally. What Are the Best Fertilizer Stocks? 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. Artists impression of the plant at the Colluli project. Click HERE for a free trial now. 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. 11). The cost curve of SOP production as of 2018, from the same source as Fig. These include: No poverty, zero hunger, quality 1). 6. The front-end engineering and design (FEED) study for the project was completed in January 2018. Simplified process flow for the production of SOP from the Colluli resource, from this source. The front-end engineering and design (FEED) study for the project was completed in January 2018. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. 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 location of the Colluli potash deposit, from this source. 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. Notify me of follow-up comments by email. 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. 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. 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? He is an alone, he is DICTATORSHIP! Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. (5) a community of investors to bounce off ideas and share information with. 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){}} The saleable SOP product will be trucked via road for sipping to the Massawa port which is located approximately 230km north-west of the project site. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. By. Information about Eritrea and the Horn of Africa. Annual output It is actually resistant to the wests oppression in the most pure sense of the term. Development is already underway with expected production in 2022. I am not receiving compensation for it (other than from Seeking Alpha). Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. 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). The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Is this happening to you frequently? 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. 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. (2) live portfolios for both capital appreciation and income generation. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Sadly, Eritrea looks set to remain a failed state as long as he is in office. 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). The Danakil Depression is an emerging potash province in Eritrea and Ethiopia.