colluli potash project in eritrea 2022

Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. The Colluli process is expected to generate a product with a purity of 94.5%. 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). taxation and exports, and from jobs and skills and economic development of the The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. Journalists say that getting any information out of the country is extremely difficult. 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 Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). 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. 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. Please. 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. This long-lasting tension has led to Eritrea's militarisation. Enter your email below to receive updates on your featured companies right to your inbox. #goog-gt-tt {display:none !important;} BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Fig. Danakali (DNK) - Technical Analysis - Crux Investor %PDF-1.7 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. <> Colluli is positioned very close to vital potash markets. Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. 9). 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. Development Goals (SDGs). A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. The front-end engineering design (FEED), expected to be Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. 6. As inflation falls, what can be expected from the Bank of England in the months to come? One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. Fig. development of the project, and the expected significant boost to royalties, So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). countries-Eritrea - - | Reverso Context Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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. The agreement can be further extended by three years if mutually agreed upon. 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. In the long run, potash consumption is expected to continue to grow as a result of population expansion. After the Second World War, it was annexed to Ethiopia. If you have an ad-blocker enabled you may be blocked from proceeding. In the initial phase of operation, Wage said, Colluli would Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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. Please disable your ad-blocker and refresh. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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). A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). It has had a border war with Ethiopia and a clash along the border with Djibouti. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. These include: No poverty, zero hunger, quality The JORC-2012 compliant mineral resource estimate, from this source. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Potash reserves among the world's largest - Economist Intelligence Unit Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Australia's Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world's. February 25, 2022. 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 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. Looking for a helping hand in the market? Fertiliser is a key component to ensure world food security in the future. Value: R 200 Million+. 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. 03 October 2022. It also has access to solar, wind and geothermal energy systems the East African rift. Your email address will not be published. I think you should research about th e author. inequalities, climate action, peace, justice and strong institutions and The Project has unrivalled potash product versatility. As a natural resources industry expert with years of successful investing experience, I conduct in-depth research to generate alpha-rich, low-risk ideas for the member of The Natural Resources Hub (TNRH). The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. I am not receiving compensation for it (other than from Seeking Alpha). 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. 10). 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. Image courtesy of Danakali. 5). 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). It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. We have recently upgraded our technology platform. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. I recommend a book by Martin Plaut, a senior researcher at Londons Institute of Commonwealth Studies and former Africa Editor of the BBCs World Service called Understanding Eritrea: Inside Africas Most Repressive State (https://www.hurstpublishers.com/book/understanding-eritrea-2/). Potash is the common term for fertiliser forms of the element potassium (K). 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. There are 70 Subscribers monitoring this project. Mineral & Phosphate Mining in the US industry outlook (2022-2027) poll Average industry growth 2022-2027: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. The front-end engineering and design (FEED) study for the project was completed in January 2018. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Is this happening to you frequently? 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. It is actually resistant to the wests oppression in the most pure sense of the term. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. The shortfall of projected and actual global potash capacity, from this source. The accommodation camp, meanwhile, has been designed to accommodate 600 personnel during the production phase with the flexibility to accommodate 1,115 during the construction phase. 3). 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). 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$500-650/t. RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. countries-EritreaReverso Context-: Only four out of now 55 countries-Eritrea, Swaziland, Libya and Somalia-lack a multi-party constitution, and the last two will get one soon. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. endobj Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. Commonly, Potash refers to Potassium Chloride or Muriate of Potash (MOP), however, a number of other potash variants exist with premium potash types containing micro-nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. Are the rights of those working on the site ensured, or will they be slaves forced to work on the mine as National Service conscripts? In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Some abridged samples of my writings are published here, while 4X as many unabridged articles are posted without delay at TNRH, a popular Seeking Alpha Marketplace service, where you also find: (1) a stream of high-alpha actionable investment ideas. % DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? Plus500. Danakali Limited selling stake in Colluli SOP project in east Africa to 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. Asmara is a beautiful city and awash in colonial Italian architectural gems. (2) live portfolios for both capital appreciation and income generation. 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. Profit was boosted by higher metal grades and prices. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. The Colluli potash project is expected to commence production in 2022. These alternative producers require substantial lead times to generate their harvest salts for processing. 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. 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. The project has a 200-year lifecycle and is expected to start operating in 2022. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. 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. it is promising future.for our country and people .Thank God. It also provides off-takers with additional confidence on Project certainty and fundability, supporting the finalisation of binding bankable offtake agreements. Agnico Eagle's EPS beat expectations; guidance maintained. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. Last Updated on: 01 December 2022. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. phosphorus mines in usa 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. The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. Fig. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Approximately 4 tonnes of Colluli drill core material have been processed at the Saskatchewan Research Council (SRC) in Canada by way of specific bench testing which has been extremely successful. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. 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). Producer of Potash is an important fertiliser. 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. 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. 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 Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). The company expects to start full commercial production in mid-December 2022. 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. 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. stream Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. 3 0 obj 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. In July 2013, major producer Belaruskali broke up with former Belarusian Potash Company cartel partner Uralkali, and in a move to grab market share, signed a potash sales contract for the Chinese market at US$315/t MOP. Fig. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. 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. 5. This post has been syndicated from a third-party source. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. 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. Fig. The deposit stretches across the border into Ethiopia. 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. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Table 1. as being forecasted back in 2015 has been removed from the supply side (Fig. Image courtesy of Danakali. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a To open fire on your own disabled [people] is pretty appalling.". 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. Simplified process flow for the production of SOP from the Colluli resource, from this source. You are talking about the garbage written by Plaut ? "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. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 2. 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 Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. The front-end engineering and design (FEED) study for the project was completed in January 2018. A big economic change will come to eritrea, proud to be an nseritrea. The report also identified how the mine could help Eritrea "There is a supportive business environment because mining there is a very strategic industry. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 11). 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. Eritrea has one of the most erratic economies in the world, partly due to chronic drought and highly variable agricultural output: its GDP surged by 31% in 2014 before plummeting by -20.6% in 2015. Some people have been in national conscription for more than 20 years. A port development at Anfile Bay could assist in unlocking this potential. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. Our 3 Top Picks. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road southeast of the port of Massawa, which is Eritrea's key import/export facility. Colluli Potash Project, Eritrea. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. The cost curve of SOP production as of 2018, from the same source as Fig. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.A United Nations report published in 2019suggested 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. 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. 4). Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 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. RA International to set up camp at Colluli sulphate of potash mine Posted by Daniel Gleeson on 21st August 2020. The government will benefit from the longer-term These authors includeSilver Coast Research, , among others. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: The project has the world's. 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. endobj RA, listed . The stock seems to be agitating for a breakout in recent weeks (Fig. 7. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Danakali eyes finish line for Eritrea potash project Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara.

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