Last Updated on: 01 December 2022. 1 0 obj 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. The Project has unrivalled potash product versatility. They are in deep need. .goog-te-menu-value:hover {text-decoration:none !important;} Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. 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. 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. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 4). Potassium bearing minerals are typically found in areas where ancient inland seas have evaporated leaving behind their minerals. Afwerki's critics accuse him of using the long-standing border dispute with Ethiopia to avoid implementing Eritreas constitution which was ratified in 1997 and for postponing the first scheduled elections (which were also due in 1997). Colluli has significant multi-commodity potential presenting major additional value upside. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. 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). growth and decent work, industry, innovation and infrastructure, reduced "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. 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. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. 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. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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. 4 0 obj The total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. endobj Plus500. The border with Sudan was closed until early 2019 because relations were so bad. "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. As inflation falls, what can be expected from the Bank of England in the months to come? Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. 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. "There is a supportive business environment because mining there is a very strategic industry. (5) a community of investors to bounce off ideas and share information with. Posted by Daniel Gleeson on 21st August 2020. seriously, this Man is a lobbyist of TPLF A group designated as a Terrorist Organisation in Ethiopia. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). 86% of retail CFD accounts lose money. US Level 1 ADR . By. 4. We use them to give you the best experience. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? 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 stock seems to be agitating for a breakout in recent weeks (Fig. 1). #google_translate_element2 {display:none!important;} 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. Previously, in London, he was editor of Investment Adviser and news editor of Financial Adviser, both of which belong to the Financial Times Group, Namibian Investment Promotion and Development Board, Dubais new family office rules can drive economic growth for the UAE, Opinion: New Brexit deal can only be a good thing for Northern Ireland, African FDI into mines on the rise as continent steps up its role in energy transition, How proptech is driving sustainability: Lessons from Stockholm, How Montrals unique agtech community is boosting local food production, EU to launch quest for raw materials critical for cleantech, Finding a cure: How cell and gene therapies could revolutionise medicine, China Shanghai Corporation for Foreign Economic and Technological Cooperation, Norway PESTLE Insights - A Macroeconomic Outlook Report, PESTLE Insights: Macroeconomic Outlook Report - Norway. The location of the Colluli potash deposit, from this source. Both are below. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Fig. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. 9). Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice, led by Afwerki. 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. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. (. Colluli - Danakali Limited <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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. The Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. 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. It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. 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. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. A big economic change will come to eritrea, proud to be an nseritrea. Fig. 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. % It has been a Unesco World Heritage Site since 2017. endobj Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. In 2023, Botswana expects diamond output to decline by 1%. 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 company expects to start full commercial production in mid-December 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 company is yet to secure an additional US$52 million of capital. 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 project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Finance > M-a. PowerMiningOil & Gas >, MiningIndustrial MineralsMajor Commodities, Lithium Americas starts construction at Thacker Pass lithium project, Advance Lithium, LitioMx in talks to establish joint venture, Jindalee unveils updated mineral resource estimate at Mcdermitt Lithium Project, Advertise with us Advertising enquiries: Roy Morris, [email protected], +44 (0) 20 7406 6613. In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? What are my chances of getting my money back? I think you should research about th e author. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Journalists say that getting any information out of the country is extremely difficult. The deposit stretches across the border into Ethiopia. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at body {top:0 !important;} It describes Eritrea as "a dictatorship in which the media has no rights". 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. Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. 3. 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. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. providing 10,000 direct and indirect local jobs. 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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> Fig. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Mining in Eritrea: could a new potash project spur sustainable growth? Send Me Updates. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . 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 Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. Colluli is the premier greenfield development project globally. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. These circumstances have resulted in it becoming one of the most isolated states in the world. 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? Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). What are the best countries for cryptocurrency adoption? Image courtesy of Danakali. 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. 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 shortfall of projected and actual global potash capacity, from this source. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. This long-lasting tension has led to Eritrea's militarisation. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. Therefore, a wide moat that's rarely seen in miners of other commodities can be found among potash miners, such as Nutrien Ltd (NTR), as discussed by fellow Seeking Alpha authors. The development of the Colluli potash projects coincides 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. 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. 4. 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. 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. and then onto production in 2022, Danakali said. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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.. It is estimated to have about 80,000 archaeological sites. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? The potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Potash historical demand trends by region, from this source. 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% . Construction nears at Colluli potash project following Eritrea ministry The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. 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). PDF owned by For personal use only The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. 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. Best. 2 0 obj In the initial phase of operation, Wage said, Colluli would Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. 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. This post has been syndicated from a third-party source. 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. 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. Some people have been in national conscription for more than 20 years. I have no business relationship with any company whose stock is mentioned in this article. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. 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. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. 6. 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 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. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. Agnico Eagle's EPS beat expectations; guidance maintained. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 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. They have significant experience in executing projects of the scale and quality required for the Colluli project. 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. Fig. (. Has access to the Ethiopian side of the deposit been guaranteed? 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. The government will benefit from the longer-term 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. 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. Why isn't Europe investing more in recycling plastic. Fig. 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. It also has access to solar, wind and geothermal energy systems the East African rift. "A lot of the troops that he had under his command all of whom were volunteers, all of whom were guerrilla fighters had been fighting, some of them, for 10, 15 years without pay. phosphorus mines in usa Project: Colluli Potash Project, Eritrea | L2B - Leads 2 Business Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. 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. ,and the value is around 67,000.00 . Profit was boosted by higher metal grades and prices. 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. 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. Our 3 Top Picks. 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. Fertiliser is a key component to ensure world food security in the future. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Potash, an important fertiliser, is found in abundance in certain parts of Ethiopia and Eritrea. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Mobile data does not exist. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Artists impression of the plant at the Colluli project. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash 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). Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. 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).

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