Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. The border with Sudan was closed until early 2019 because relations were so bad. 1 0 obj 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. Development Goals (SDGs). It has been a Unesco World Heritage Site since 2017. The Colluli resource contains kainitite, sylvinite and carnallitite ores. 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). 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. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Has access to the Ethiopian side of the deposit been guaranteed? The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. providing 10,000 direct and indirect local jobs. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 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. 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. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 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. 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. 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. 6. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . The shortfall of projected and actual global potash capacity, from this source. 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. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. (2) live portfolios for both capital appreciation and income generation. With the first production scheduled for 2022, Danakali is well positioned to emerge as a pure-play SOP producer in the coming years, especially considering its low-cost structure (Fig. 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. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? 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. 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. 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. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. Select LanguageChinese (Simplified)EnglishGerman 3. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. 2 0 obj The Colluli process is expected to generate a product with a purity of 94.5%. He is an alone, he is DICTATORSHIP! However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. Why isn't Europe investing more in recycling plastic. 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 November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. Disclosure: I am/we are long SBMSF, CMP. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. It is estimated to have about 80,000 archaeological sites. Extraction of the salts in solid form is a crucial positive differentiator of Colluli. 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,. Fig. Colluli has significant multi-commodity potential presenting major additional value upside. endobj Agnico Eagle's EPS beat expectations; guidance maintained. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Our 3 Top Picks. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. endobj Colluli is positioned very close to vital potash markets. 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/). The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. There is also potential for kieserite The document estimated that Colluli would contribute 3% of Fig. The asset has the potential to produce other fertilizer 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. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. I wrote this article myself, and it expresses my own opinions. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. 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. In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. These circumstances have resulted in it becoming one of the most isolated states in the world. Annual output In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Based on what evidence? 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. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Only 1% of the population has access to the internet, according to the World Bank. I wrote this article myself, and it expresses my own opinions. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Fig. 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. These authors includeSilver Coast Research, , among others. #google_translate_element2 {display:none!important;} The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. it is promising future.for our country and people .Thank God. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. (. 6. "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. 3). On December 3, 2019, Africa Finance Corporation also agreed to make a US$50 million equity investment in two tranches at A$0.60 per Danakali share. 10. The best energy and mining stock ideas with multibagger potential. As inflation falls, what can be expected from the Bank of England in the months to come? 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. 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. You are talking about the garbage written by Plaut ? It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. 6. 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Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? the countrys GDP by 2021 and 50% of the nations exports by 2030, while 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. It also has access to solar, wind and geothermal energy systems the East African rift. 7. 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. I am not receiving compensation for it (other than from Seeking Alpha). % The Colluli Potash Project (Project, Colluli ) is 100%. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. Some people have been in national conscription for more than 20 years. The UN says forced labour and detention without trial are common. 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. What are my chances of getting my money back? It thus follows we should keep an eye on emerging potash producers. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. #goog-gt-tt {display:none !important;} Across the country, an estimated two-thirds of households are impacted by food insecurity. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. Shareholders are slated to . Under the current FEED study for Module 1 and 2, Danakali will be one of the lowest cost SOP producers and with the development of the loading facility at Anfile Bay costs will decrease further as transportation costs are reduced. The company expects to start full commercial production in mid-December 2022. Danakali Lmited is selling share to China. 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. 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. 9. The development of the Colluli potash projects coincides 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. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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). Fig. The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. 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. The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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. There are 70 Subscribers monitoring this project. It assesses a wide range of econometric data and includes findings . 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). Simplified process flow for the production of SOP from the Colluli resource, from this source. 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. We use them to give you the best experience. With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. 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. mine-life. In the long run, potash consumption is expected to continue to grow as a result of population expansion. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. 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. These include: No poverty, zero hunger, quality They are in deep need. The company is yet to secure an additional US$52 million of capital. Colluli Mining Share Company secured 165m ($200m) of senior debt finance from the Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank) in August 2019. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). 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. Earth Moving Worldwide (EMW) was selected to provide mining services for the Colluli potash project in December 2019. Standard, granular and soluble products can be produced for distribution to the market. Whilst SOP demand is population growth story it is more of an economic growth story and the African continent is seen to be where the majority of the worlds economic growth will occur in the coming decades. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. The front-end engineering and design (FEED) study for the project was completed in January 2018. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. RA, listed . 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. 5. 4). 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. inequalities, climate action, peace, justice and strong institutions and One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. 4. 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. Mobile data does not exist. Status: Design. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. 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. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. The project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. finished in June, will take the company a step closer to the construction phase 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 decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. 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 stock chart of Danakali, modified from this source. 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. I have no business relationship with any company whose stock is mentioned in this article. 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 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. Australia's Danakali (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. ,and the value is around 67,000.00 . 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. 2. I think you should research about th e author. 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.

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