The project is the only known source of potash that allows extraction of the fertilizer in solid form. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. 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. It also has access to solar, wind and geothermal energy systems the East African rift. 1 0 obj 4. Adjusted net income of $0.52 beat the consensus estimate of $0.43. 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. 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. Invest in t. There is also potential for kieserite In 2023, Botswana expects diamond output to decline by 1%. 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. MiningOther CommoditiesIndustrial Minerals, Danakali (50%) and Eritrean National Mining Corporation (ENAMCO, 50%). 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". Eritrean troops are fighting on the Ethiopian government's side (Eritrea borders Tigray to the north). 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 . 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). SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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. The project is the only known source of potash that allows extraction of the fertilizer in solid form. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. Danakali (DNK) - Technical Analysis. Select LanguageChinese (Simplified)EnglishGerman Please. Business intelligence for leaders in foreign direct investment. countries-Eritrea - - | Reverso Context 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 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). Geothermal an energy option for Colluli mining project in Eritrea If you have an ad-blocker enabled you may be blocked from proceeding. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. I have no business relationship with any company whose stock is mentioned in this article. I wrote this article myself, and it expresses my own opinions. 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. 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. To open fire on your own disabled [people] is pretty appalling.". 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. . But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. 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? (5) a community of investors to bounce off ideas and share information with. Development is already underway with expected production in 2022. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Fig. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Fertiliser is a key component to ensure world food security in the future. This project has been viewed 588 times. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Journalists say that getting any information out of the country is extremely difficult. Apart from SOP, the salt composition at the deposit also allows for the production of other potash products including sulphate of potash-magnesia (SOP-M) and muriate of potash (MOP). If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The Colluli resource contains kainitite, sylvinite and carnallitite ores. Why isn't Europe investing more in recycling plastic. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.net Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Reverso Context-: DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . I am not receiving compensation for it (other than from Seeking Alpha). The benefits of this means we generate cash flow much earlier and more predictably relative to solution mining or brine operations. 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. inequalities, climate action, peace, justice and strong institutions and 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. second phase of development, as the project has a possible 200-year plus 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. Afwerki has become close to Abiy and is a sworn enemy of the Tigray Peoples Liberation Front, which ruled Ethiopia when the two countries fought a border war. 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. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. The front-end engineering and design (FEED) study for the project was completed in January 2018. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. 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. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Danakali (DNK) - Technical Analysis - Crux Investor 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 about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. 5). Development Goals (SDGs). Potash is an important fertiliser. (. 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. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a 11). 11. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). Danakali to use filtered sea water at Colluli potash mine Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? In some cases, depending on the ambient conditions, this process can take over two years. Upon accepting the notice, the ministry, Danakali said, also showed support for the financing of the Colluli project by: 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. A big economic change will come to eritrea, proud to be an nseritrea. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. 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. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. It also has access to solar, wind and geothermal energy systems the East African rift. 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. They have significant experience in executing projects of the scale and quality required for the Colluli project. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. 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 front-end engineering design (FEED), expected to be The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) fertiliser project under development by the Colluli Mining Share Company, a 50-50 joint venture partnership between the Australian start-up Danakali and the Eritrean National Mining Corporation. Status: Design. Proudly Researched by: Melanie Miles. 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. The Colluli potash project is expected to commence production in 2022. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. M&A: Mining Finance | Mining Journal Artists impression of the plant at the Colluli project. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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. Posted by Daniel Gleeson on 21st August 2020. Is this happening to you frequently? After all considerations and government taxes, Danakali said it expects to receive approximately $121m. The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. It also has access to solar, wind and geothermal energy systems - the East African rift. 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. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. Potash historical demand trends by region, from this source. 3 0 obj Since then, potash price has fallen from the neighborhood of US$600/t MOP to as low as USS$200/t MOP by 2017, and has since been fluctuating between US$200/t and US$270/t. You are talking about the garbage written by Plaut ? 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. and then onto production in 2022, Danakali said. US Level 1 ADR's OTC-DNKLY, CUSIP.23585T101 The world's largest JORC compliant solid salt, Sulphate of . We use them to give you the best experience. In turn the well-defined geological features support our ability to maximise the potential from this the multi salt deposit. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. Fig. Enter your email below to receive updates on your featured companies right to your inbox. Colluli is positioned very close to vital potash markets. Fig. 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 total measured, indicated and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. 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. Danakali to sell stake in flagship Colluli potash project in Eritrea keyValue[2].split('/')[2] : null;} 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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% . The stock seems to be agitating for a breakout in recent weeks (Fig. .goog-te-menu-value:hover {text-decoration:none !important;} The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. body {top:0 !important;} function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];if(GTranslateGetCurrentLang() == null && lang == lang_pair.split('|')[0])return;var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;i () // Colluli Potash Project Eritrea Our 3 Top Picks. According to Reporters Without Borders, only North Korea has less press freedom. Reminders. Mobile data does not exist. Asmara is a beautiful city and awash in colonial Italian architectural gems. "We have found Eritrea to be very transparent and consistent across the board," Seamus Cornelius, Danakali's executive chairman, said in an interview. 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.