To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Danakali to cash out of Colluli - Mining Journal 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. Fig. finished in June, will take the company a step closer to the construction phase The FEED economic estimates, from the same source as Fig. These include: No poverty, zero hunger, quality It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. We use them to give you the best experience. Fig. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. Danakali Limited selling stake in Colluli SOP project in east Africa to 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. 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. 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. countries-Eritrea - - | Reverso Context Two articles indicate the rapid progress towards the development of a vast potash mine in the Danakil desert. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the module I SOP production over a 10+3 year term from the project commissioning. 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. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. 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. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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. / Danakali: Colluli Potash Mining Project Eritrea RA, listed . Eritrea has historically struggled to attract large investments because of its unfavourable business climate. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. it is promising future.for our country and people .Thank God. Eritrea: potash and the pariah state - Investment Monitor 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. Danakali appoints Aggreko as power contractor at Colluli Has access to the Ethiopian side of the deposit been guaranteed? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. It thus follows we should keep an eye on emerging potash producers. 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 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. Sadly, Eritrea looks set to remain a failed state as long as he is in office. Australias Danakali (ASX, LON:DNK) said on Thursday it was in the final stages of completing the second phase of developmentof its world-class Colluli potash project in Eritrea, Africa. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Adjusted net income of $0.52 beat the consensus estimate of $0.43. These circumstances have resulted in it becoming one of the most isolated states in the world. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. inequalities, climate action, peace, justice and strong institutions and You are talking about the garbage written by Plaut ? Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. We need a bit of money.' Analysis of the Potential Contributions of Colluli Potash Project to He is an alone, he is DICTATORSHIP! 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. 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. 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. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. 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). By. Shareholders are slated to . In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 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. The stock seems to be agitating for a breakout in recent weeks (Fig. Fig. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. 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. "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. Profit was boosted by higher metal grades and prices. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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. 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. (. 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. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. <>/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 Colluli potash deposit is considered to be one of the worlds shallowest evaporite mineralisation with potash resources found just 16m below the surface. education, gender equality, clean water and sanitation, sustainable economic development of the project, and the expected significant boost to royalties, 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. 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.. Artists impression of the plant at the Colluli project. 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? As the commodity supercycle unfolds, you are invited to join The Natural Resources Hub today to take advantage of a slew of generational opportunities alongside Laurentian Research. 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. <>/Metadata 306 0 R/ViewerPreferences 307 0 R>> I am not receiving compensation for it (other than from Seeking Alpha). 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. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? The project is the only known source of potash that allows extraction of the fertilizer in solid form. 8. x][sF~w""s)d;9>u^v0@ROcTE&Agdjyr8_N>}\O_,g|yrqKbzlwGouQB b-*dkGO?-M^e1?!;=^RxGN{t2k JSUUSx=ce :jc`s>h. What are the best countries for cryptocurrency adoption? 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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. 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. 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". 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. Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! 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. Business intelligence for leaders in foreign direct investment. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The shortfall of projected and actual global potash capacity, from this source. taxation and exports, and from jobs and skills and economic development of the 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). Open-cut mining is a proven mining method for salts, and its safer and more cost-effective than underground mining which allows for better overall resource recovery. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. 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. What are my chances of getting my money back? In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. To lower infrastructure uncertainties, in August and October 2020, respectively, Danakali appointed RA International Group PLC as the preferred contractor for the supply of accommodation, support services, and other infrastructure buildings, and Aggreko (AGK.LSE) as its preferred power supply contractor for its 12MW HFO power plant at Colluli under a five-year BOOT contract, removing a major infrastructure uncertainty. Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. 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. 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. #goog-gt-tt {display:none !important;} 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. In 2023, Botswana expects diamond output to decline by 1%. Fig. The Colluli potash mine is estimated to hold 1.1 billion tonnes of SOP ore reserves grading 10.5% potassium oxide (K2O). Send Me Updates. Simplified process flow for the production of SOP from the Colluli resource, from this source. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. Foreign investment in most business sectors is heavily restricted and state-owned enterprises distort its markets. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. In some cases, depending on the ambient conditions, this process can take over two years. 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. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. body {top:0 !important;} The UN says forced labour and detention without trial are common. providing 10,000 direct and indirect local jobs. Annual output Fertiliser is a key component to ensure world food security in the future. #google_translate_element2 {display:none!important;} 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. 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. 7. The document estimated that Colluli would contribute 3% of 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). Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. 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. Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). Colluli - Danakali Limited 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 project has the world's. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. (5) a community of investors to bounce off ideas and share information with. Our people is poor continue!!!! mine-life. Over 6Bt of potassium bearing salts suitable for the production of potash fertilisers have been identified in the region to date. So, as a mining jurisdiction, it has got nothing but ticks in all the right boxes.". 9. 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.
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