Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien %
Why isn't Europe investing more in recycling plastic. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. 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 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,. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;i / Danakali: Colluli Potash Mining Project Eritrea 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.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 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. Profit was boosted by higher metal grades and prices. 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. It assesses a wide range of econometric data and includes findings . I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. This post has been syndicated from a third-party source. It also said that all vendor and contractor packages have now been received. 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. 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). Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. 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. 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. Please disable your ad-blocker and refresh. 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. This geographical advantaged is unique. By. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). 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. The agreement can be further extended by three years if mutually agreed upon. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. It is estimated to have about 80,000 archaeological sites. View the original article here. What are the best countries for cryptocurrency adoption? 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 $200 million funding mandate. Danakali to sell stake in flagship Colluli potash project in Eritrea Fig. Image courtesy of Danakali. We need a bit of money.' with the move towards diplomatic relations between the once feuding countries I am not receiving compensation for it (other than from Seeking Alpha). To open fire on your own disabled [people] is pretty appalling.".
Shareholders are slated to . Danakali to use filtered sea water at Colluli potash mine The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. In the sprawling mining sector, potash mining is unique in that potash mines typically last decades to even centuries, thus forcing the miners to deploy capital for the long-term return, and that transportation of bulk-tonnage potash tends to lead to regional monopolies. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's 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. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. mine-life. Phase one involving an estimated capital investment of $298m is expected to produce 472,000 tonnes (t) a year of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000t of SOP from year six of the project with an additional capital investment of $202m. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Colluli is the premier greenfield development project globally. 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. 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. and then onto production in 2022, Danakali said. countries-Eritrea - - | Reverso Context It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Journalists say that getting any information out of the country is extremely difficult. Fig. 1 0 obj
The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. Eritrea was, until 2018, on the UNs sanctions list. Potash is an important fertiliser. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. In the long run, potash consumption is expected to continue to grow as a result of population expansion. 9). 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. Danakali closer to getting Eritrea potash project off the ground 5). Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. Danakali looks into solar, wind to power Eritrea potash project 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). 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. 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. Analysis of the Potential Contributions of Colluli Potash Project to 6. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. 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. 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. Additional details about the agreement are available in the following announcement >>. Potash historical demand trends by region, from this source. Posted by Daniel Gleeson on 21st August 2020. 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. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. The company expects to start full commercial production in mid-December 2022. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. Colluli is located in the Danakil Depression . 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 fertilizer. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;}
Enter your email below to receive updates on your featured companies right to your inbox. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 11). inequalities, climate action, peace, justice and strong institutions and We have recently upgraded our technology platform. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. There are many sources of potassium, including. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. 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. of Eritrea and Ethiopia, which officially declared peace in July 2018. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. %PDF-1.7
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 to cash out of Colluli. The government will benefit from the longer-term 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 If you have an ad-blocker enabled you may be blocked from proceeding. 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. 6. Best. Danakali Limited selling stake in Colluli SOP project in east Africa to Artists impression of the plant at the Colluli project. 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. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. The FEED economic estimates, from the same source as Fig. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. endobj
Sadly, Eritrea looks set to remain a failed state as long as he is in office. Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. (. 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. 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. Colluli is positioned very close to vital potash markets. The report also identified how the mine could help Eritrea 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. 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. The JORC-2012 compliant mineral resource estimate, from this source. Development Goals (SDGs). 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. Danakali to sell stake in flagship Colluli potash project in Eritrea The Colluli potash project is considered one of the world's most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Mining in Eritrea: could a new potash project spur sustainable growth? Colluli has significant multi-commodity potential presenting major additional value upside. Standard, granular and soluble products can be produced for distribution to the market. Is this happening to you frequently? Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. 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. The Colluli project requires low upfront development costs and is highly scalable for long-life production. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. stream
4. 4. 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. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. 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. "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. Fig. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at Colluli has been largely de-risked in terms of. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. 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. A port development at Anfile Bay could assist in unlocking this potential. The front-end engineering design (FEED), expected to be 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 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. 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. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population).
It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. I wrote this article myself, and it expresses my own opinions. 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. Send Me Updates. Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. Looking for a helping hand in the market? education, gender equality, clean water and sanitation, sustainable economic Both are below. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! providing 10,000 direct and indirect local jobs. 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. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). ,and the value is around 67,000.00 . MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). He is an alone, he is DICTATORSHIP! The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. growth and decent work, industry, innovation and infrastructure, reduced 5. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. 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. 9. Adjusted net income of $0.52 beat the consensus estimate of $0.43. Danakali: Why This Little-Known Potash Developer Is A Buy <>
The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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){}}
4. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? it is promising future.for our country and people .Thank God. 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 mine could be an economic game changer for Eritrea but the country is unlikely to undergo an economic transformation as long as Afwerki is in power. 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.