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. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Our people is poor continue!!!! 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. endobj Danakali Lmited is selling share to China. The deposit stretches across the border into Ethiopia. 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). Development is already underway with expected production in 2022. 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. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Fig. .goog-te-menu-value:hover {text-decoration:none !important;} BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. with the move towards diplomatic relations between the once feuding countries 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. produce more than 472,000 tonnes a year of Sulphate of Potash. Fig. 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. 1. region, chief executive Niels Wagetold MINING.COM last year. 8. 3 0 obj Reverso Context-: 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. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} Business intelligence for leaders in foreign direct investment. There are 70 Subscribers monitoring this project. 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. Below, let's look at Danakali Ltd. (DNK.ASX) (OTCPK:SBMSF) (OTCPK:DNKLY), which operates in Eritrea. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. By. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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){}} 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. 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. 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). 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Fig. 1 0 obj 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. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. The Colluli process is expected to generate a product with a purity of 94.5%. 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. 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. 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. PDF owned by For personal use only The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. 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 focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . 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. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. as being forecasted back in 2015 has been removed from the supply side (Fig. growth and decent work, industry, innovation and infrastructure, reduced Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. 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. 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. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Adjusted net income of $0.52 beat the consensus estimate of $0.43. Its constitution has not been implemented, the parliament has been prorogued for many years, the ruling party has not held a congress for a number of years and independent media is banned. 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.. 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. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. <> MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business He is an alone, he is DICTATORSHIP! This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 6. As a matter of fact, Zijin Mining (OTCPK:ZIJMF) acquired Nevsun Resources along with its Bisha zinc-copper mine in Eritrea on December 28, 2018. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. 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. 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. 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. - - | Reverso Context The company is yet to secure an additional US$52 million of capital. 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. These authors includeSilver Coast Research, , among others. 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. All land is considered state-owned and property rights are non-existent. 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. What Are the Best Fertilizer Stocks? The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Information about Eritrea and the Horn of Africa. 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. Has access to the Ethiopian side of the deposit been guaranteed? Your email address will not be published. The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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. It also has access to solar, wind and geothermal energy systems the East African rift. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). () // Colluli Potash Project Eritrea We use them to give you the best experience. 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. Why isn't Europe investing more in recycling plastic. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. What are the best countries for cryptocurrency adoption? 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. Standard, granular and soluble products can be produced for distribution to the market. 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 Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . 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. Status: Design. second phase of development, as the project has a possible 200-year plus The front-end engineering design (FEED), expected to be About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. Is this happening to you frequently? Additional details about the agreement are available in the following announcement >>. Based on what evidence? Extraction of the salts in solid form is a crucial positive differentiator of Colluli. "There is a supportive business environment because mining there is a very strategic industry. Proudly Researched by: Melanie Miles. The government will benefit from the longer-term The border with Sudan was closed until early 2019 because relations were so bad. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. 9. In the initial phase of operation, Wage said, Colluli would These alternative producers require substantial lead times to generate their harvest salts for processing. 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 estimated at US$73/t. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. Danakali (DNK) - Technical Analysis - Crux Investor Potash is the common term for fertiliser forms of the element potassium (K). Fig. 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. Both are below. A United Nations report says that Eritrea's Danakali Colluli potash project has the potential to boost the economy of the country that was removed from the UN's sanctions list only two months ago. Plus500. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. The project has a 200-year lifecycle and is expected to start operating in 2022. It also has access to solar, wind and geothermal energy systems - the East African rift. Colluli has significant multi-commodity potential presenting major additional value upside. 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). In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. Asmara is a beautiful city and awash in colonial Italian architectural gems. 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/). Colluli has been largely de-risked in terms of. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. Our 3 Top Picks. Colluli - Danakali Limited inequalities, climate action, peace, justice and strong institutions and 10. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. 2. A port development at Anfile Bay could assist in unlocking this potential. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;} Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 6. Image courtesy of Danakali. Danakali has reported a 1.1 billion ore reserve with a mine life of almost 200 years. Simplified process flow for the production of SOP from the Colluli resource, from this source. Danakali (DNK) - Technical Analysis. Eritrea's potash mining takes shape but questions remain Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Required fields are marked *. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. 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. Please. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". The UN says forced labour and detention without trial are common. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Installation of an export terminal at Anfile Bay would decrease the length of the land transport route from 230 to only 87 km, thus further lowering the logistics costs required to satisfy the multi-commodity trade in and out of Eritrea. 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. The cost curve of SOP production as of 2018, from the same source as Fig. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Disclosure: Besides myself, TNRH is fortunate enough to have multiple other contributing authors who post articles for and share their views with our thriving community. Fig. According to Reporters Without Borders, only North Korea has less press freedom. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. Producer of 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 $200 million funding mandate. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. Commonly, Potash refers to Potassium Chloride or Muriate of Potash (MOP), however, a number of other potash variants exist with premium potash types containing micro-nutrients as well as macro nutrients such as potassium sulphate, potassium magnesium sulphate and potassium nitrate. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 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? The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. 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. 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. 4. 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% . #google_translate_element2 {display:none!important;} 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. 86% of retail CFD accounts lose money. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. Profit was boosted by higher metal grades and prices. I wrote this article myself, and it expresses my own opinions. keyValue[2].split('/')[2] : null;} Looking for a helping hand in the market? The location of the Colluli potash deposit, from this source. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The Colluli Potash Project (Project, Colluli) is 100% owned by Colluli Mining Share Company (CMSC,) a 50:50 Joint Venture between Danakali Limited (DNK) and Eritrean National Mining rporation (ENAMCO) Codes: ASX: DNK, SO3-FRA, SO3-BER. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. Colluli Potash Project Aspires to 'Meaningfully' Advance Eritrea's The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. Danakali rates 2022 potash target unlikely as "all options - Miningmx 11. 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. Potash historical demand trends by region, from this source. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea 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. 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 best energy and mining stock ideas with multibagger potential. (. Colluli Potash Project, Eritrea. education, gender equality, clean water and sanitation, sustainable economic What are my chances of getting my money back? This project has been viewed 588 times. Annual output In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. Please disable your ad-blocker and refresh. 03 October 2022. The Project has unrivalled potash product versatility. 5. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Danakali closer to getting Eritrea potash project off the ground Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. % 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. .goog-te-banner-frame {display:none !important;} It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. Danakali to sell stake in flagship Colluli potash project in Eritrea Shallowest known evaporite deposit globally. As inflation falls, what can be expected from the Bank of England in the months to come? 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. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. In 2023, Botswana expects diamond output to decline by 1%. Send Me Updates. 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. 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).