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The front-end engineering and design (FEED) study for the project was completed in January 2018. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. 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. These circumstances have resulted in it becoming one of the most isolated states in the world. keyValue[2].split('/')[2] : null;} Potash is the common term for fertiliser forms of the element potassium (K). Proudly Researched by: Melanie Miles. The cost curve of SOP production as of 2018, from the same source as Fig. (. 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 resource contains 303Mt @ 11% K2 0 of Measured Resource, 951Mt @ 11% K2 0 of Indicated Resource and 35Mt @ 10% K20 of Inferred Resource. The country also has 486,200 refugees, including 123,413 living in Sudan, 172,750 in Ethiopia and 18,976 in Egypt. 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 stock seems to be agitating for a breakout in recent weeks (Fig. Profit was boosted by higher metal grades and prices. 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. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. The Eritrean government, through ENAMCO, has a 50% interest in the Colluli project. providing 10,000 direct and indirect local jobs. Both are below. Annual output A United Nations report published in 2019suggested that Colluli could significantly boost the economy of Eritrea. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). The shortfall of projected and actual global potash capacity, from this source. AFC also agreed for an additional 39m ($50m) of strategic equity investment in Danakali in December 2019. "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. 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). 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. 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. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. RA, listed . Finance > M-a. Invest in t. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. 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/). Value: R 200 Million+. We use them to give you the best experience. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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 will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Reverso Context-: Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a The construction works for the Colluli potash mine are expected to be started in 2021 with the start of production expected in 2022. 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). Fig. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. Posted by Daniel Gleeson on 21st August 2020. Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. 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. With mineralisation commencing at just 16m, the Colluli resource is the shallowest known evaporite deposit globally and is amenable to open-cut mining. 4. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 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. Danakali explored the use of filtered seawater at Colluli. 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. For the area a high-temperature geothermal reservoir was identified in Alid with estimates of a potential heat of 250 to 300 degrees Celsius. Posted by Daniel Gleeson on 21st August 2020. What are my chances of getting my money back? 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. The best energy and mining stock ideas with multibagger potential. Colluli has been largely de-risked in terms of. "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. The Danakil Depression that commences in Eritrea and extends up to 300km into Ethiopia, is believed to contain more than six billion tonnes of potassium bearing salts. Potash is an important fertiliser. 5). 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, roy.morris@progressivemediainternational.com, +44 (0) 20 7406 6613. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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. Additional details about the agreement are available in the following announcement >>. 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. Has access to the Ethiopian side of the deposit been guaranteed? This long-lasting tension has led to Eritrea's militarisation. The deposit stretches across the border into Ethiopia. You are talking about the garbage written by Plaut ? Last Updated on: 01 December 2022. 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. This geographical advantaged is unique. The project has a 200-year lifecycle and is expected to start operating in 2022. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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 August 2019, Danakali announced Africa Finance Corporation and African Export-Import Bank (Afreximbank) have obtained formal credit approval to provide US$200 million in senior debt finance, as part of the overall project funding package used for the construction of Colluli, with the documentation finalized on December 23, 2019. It also has access to solar, wind and geothermal energy systems the East African rift. inequalities, climate action, peace, justice and strong institutions and Sadly, Eritrea looks set to remain a failed state as long as he is in office. The UN says forced labour and detention without trial are common. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. Eritrea has one of the world's most brutal dictatorships, but could a huge potash mine be an economic game changer? Eritrea was, until 2018, on the UNs sanctions list. advance its sustainable development agenda, which are 13 priority Sustainable