I have no business relationship with any company whose stock is mentioned in this article. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Journalists say that getting any information out of the country is extremely difficult. You are talking about the garbage written by Plaut ? The underapplication of SOP in developing regions where the highest rates of population growth are expected, from this source. Proudly Researched by: Melanie Miles. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). Danakali explored the use of filtered seawater at Colluli. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. The development of the Colluli potash projects coincides Standard, granular and soluble products can be produced for distribution to the market. 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. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. It has industry-leading capital intensity, forecast first quartile operating costs, and highly attractive economic returns. Colluli is obviously a tier-1 asset, boasting the lowest-costs in the world and >200 years of mine life. Danakali is set to sell its stake in its flagship Colluli potash project in Eritrea for US$121 million. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. The agreement can be further extended by three years if mutually agreed upon. 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){}} 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. Click HERE for a free trial now. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. 4 0 obj body {top:0 !important;} Our 3 Top Picks. 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. Only 1% of the population has access to the internet, according to the World Bank. the countrys GDP by 2021 and 50% of the nations exports by 2030, while I wrote this article myself, and it expresses my own opinions. stream Fertiliser is a key component to ensure world food security in the future. 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. 2. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. Colluli Potash Project, Eritrea. A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. Fig. 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. The project has now obtained all licenses and permits within the license area and has also been granted all required permits, licences and authorisations for infrastructure construction and development outside the Colluli mining license area. 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. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. endobj 86% of retail CFD accounts lose money. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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. The JORC-2012 compliant ore reserve estimate at Colluli is estimated at 1,100 Mt at 10.5% K2O for 203 Mt of contained SOP equivalent (Fig. On September 11, 2018, the Eritrea-Ethiopia border re-opened for the first time since 1998. The company is yet to secure an additional US$52 million of capital. 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. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. 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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. "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. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. 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. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. We need a bit of money.' partnerships for the SDGs. 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. 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. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. The front-end engineering design (FEED), expected to be Enter your email below to receive updates on your featured companies right to your inbox. 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. The border with Sudan was closed until early 2019 because relations were so bad. The company expects to start full commercial production in mid-December 2022. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). 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. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. 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. We use them to give you the best experience. 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. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. It also said that all vendor and contractor packages have now been received. The Project has unrivalled potash product versatility. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. My References:Danakali Ltd:https://www.danakali.com.au/ Interested in supporting this channel: Paypal: PayPal . Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 4). The Colluli project is a 5050 joint venture between South Boulder Mines and the government-owned Eritrean National Mining Corporation. By. 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. Flour was awarded the FEED contract for the Colluli potash project in January 2017. Best. 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. 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. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. Our people is poor continue!!!! Danakali Lmited is selling share to China. Image courtesy of Danakali. Simplified process flow for the production of SOP from the Colluli resource, from this source. What are my chances of getting my money back? Danakali has a 50% interest in a JV with the Eritrean National Mining Corporation (or ENAMCO), which operates the Colluli project. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. "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. The Colluli potash project is expected to commence production in 2022. The Danakil Depression, which extends over 300km into eastern Ethiopia, hosts over 6,000 Mt of potassium-bearing salts suitable for the production of potash fertilizers. It assesses a wide range of econometric data and includes findings . 3 0 obj The Colluli deposit comprises a massive JORC-2012 compliant Ore Reserve estimate of 1,100Mt @ 10.5% K2O for 203Mt of contained SOP equivalent, providing a mine life of almost 200 years. In 1993, after a brutal war of independence from Ethiopia lasting almost three decades and led by Isaias Afwerki Eritrea became a sovereign country. 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. Materials handling trials have also been completed to determine the anti-caking requirements for the final SOP product. The project has the world's. "They were only used to getting effectively pocket money and food, lodging and, of course, ammunition and weapons, and they began to turn round and say: 'Well, hang on, we now have to look after our families. All land is considered state-owned and property rights are non-existent. growth and decent work, industry, innovation and infrastructure, reduced

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