colluli potash project in eritrea 2022

The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Only 1% of the population has access to the internet, according to the World Bank. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Standard, granular and soluble products can be produced for distribution to the market. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. Colluli, furthermore, boasts the shallowest evaporite mineralisation globally and consequently has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. I wrote this article myself, and it expresses my own opinions. Development is already underway with expected production in 2022. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. 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. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO). Danakali Lmited is selling share to China. These circumstances have resulted in it becoming one of the most isolated states in the world. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Fig. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 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. 1 0 obj The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Business intelligence for leaders in foreign direct investment. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 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 is positioned very close to vital potash markets. 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.. Agnico Eagle's EPS beat expectations; guidance maintained. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. 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. It also has access to solar, wind and geothermal energy systems the East African rift. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash 2. Colluli has been largely de-risked in terms of. After the Second World War, it was annexed to Ethiopia. The SOP quality spectrum, from the same source as Fig. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy <> 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. Image courtesy of Danakali. Colluli is only 75km from the Red Sea coast, 87km from a port planned at the Anfile Bay, and 230km from the existing Port of Massawa, making it the SOP deposit closest to a coastline and giving it an advantage over competing projects in neighboring Ethiopia, such as the Yara Dallol project of Yara International ASA (. 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). Colluli is located in the Danakil Depression . it is promising future.for our country and people .Thank God. The project will be developed in multi-modules, with Module I serving as a platform for future growth. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. And how is that relevant here, the government has not changed since Dankalis involvement so it was certainly a government worth doing business with at some time. Please disable your ad-blocker and refresh. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. The asset has the potential to produce other fertilizer It is actually resistant to the wests oppression in the most pure sense of the term. 10. MoEM has shown support for the financing of the project by granting time to begin commercial production (up to mid-December 2022) as well as . 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. Fig. 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. What are my chances of getting my money back? A port development at Anfile Bay could assist in unlocking this potential. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 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. By. 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. 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. 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. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. All land is considered state-owned and property rights are non-existent. I am not receiving compensation for it (other than from Seeking Alpha). This long-lasting tension has led to Eritrea's militarisation. and then onto production in 2022, Danakali said. 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). The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast The Perth-based miner noted that despite covid-19 restrictions,. 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. 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. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Posted by Daniel Gleeson on 21st August 2020. This geographical advantaged is unique. 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. The water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. 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. In August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. Fig. There is also potential for kieserite Reminders. View the original article here. In late 2019, the China Shanghai Corporation for Foreign Economic and Technological Cooperation began constructing part of the 500km road connecting Eritreas Massawa and Assab harbours (both have special economic zones). keyValue[2].split('/')[2] : null;} 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 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. Shallowest known evaporite deposit globally. 5). The stock chart of Danakali, modified from this source. It is estimated to have about 80,000 archaeological sites. 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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. The Colluli project requires low upfront development costs and is highly scalable for long-life production. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. A big economic change will come to eritrea, proud to be an nseritrea. % Fig. 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. 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. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. You are talking about the garbage written by Plaut ? Fig. 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. 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. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. US Level 1 ADR . BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Status: Design. 6. 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. 4. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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. Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertiliser. The best energy and mining stock ideas with multibagger potential. Danakali, an Australian company that has been developing the Colluli potash project in Eritrea, was recently granted permission by the Eritrean Ministry of Energy and Mines to commence commercial production at Colluli. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. The project has the world's. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. region, chief executive Niels Wagetold MINING.COM last year. second phase of development, as the project has a possible 200-year plus Profit was boosted by higher metal grades and prices. The document estimated that Colluli would contribute 3% of Annual output The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The front-end engineering and design (FEED) study for the project was completed in January 2018. 5. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. 7. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. Colluli, which Danakali shares with the Eritrean National Mining Corporation, is scoped to produce 472,000 tons a year of potash in sulphate (SOP) in its first phase before scaling up to second phase production of 944,000 tons annually. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 6. It has been a Unesco World Heritage Site since 2017. February 25, 2022. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. Adjusted net income of $0.52 beat the consensus estimate of $0.43. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. mine-life. 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. and mag chloride to be commercialized with minimal further processing required. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritreas key import/export facility. The stock seems to be agitating for a breakout in recent weeks (Fig. 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. Eritrea was, until 2018, on the UNs sanctions list. 86% of retail CFD accounts lose money. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 9. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 1. 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. Our 3 Top Picks. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. He is an alone, he is DICTATORSHIP! 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. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. The Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. 6. 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. Please. growth and decent work, industry, innovation and infrastructure, reduced Value: R 200 Million+. 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. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Posted by Daniel Gleeson on 21st August 2020. 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. Is this happening to you frequently? There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). #goog-gt-tt {display:none !important;} 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. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018.