Artists impression of the plant at the Colluli project. 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 geographic area of 117,600km2, making it slightly larger than Bulgaria. 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. 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 thus follows we should keep an eye on emerging potash producers. 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). Why isn't Europe investing more in recycling plastic. Economic resources for Sulphate of Potash (SOP) production are scarce, and Colluli is favourably positioned to supply the worlds fastest-growing SOP markets. The deposit contains mainly three types of potassium bearing salts including sylvinite, carnallitite, and kainitite. Asmara is a beautiful city and awash in colonial Italian architectural gems. partnerships for the SDGs. Reminders. EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Our 3 Top Picks. 6. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. In July, the Eritrean Ministry of Energy & Mines paved the way for construction to start at the project after accepting the Colluli Notice of Commencement of Mine Development. 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). By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Masdar City Free Zone privacy policy %
Due to this change if you are seeing this message for the first time please make sure you reset your password using the Forgot your password Link. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. Prime Minister Abiy Ahmed accused the Tigrayans of attacking a military camp and attempting to loot military assets. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. This long-lasting tension has led to Eritrea's militarisation. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt. These include: No poverty, zero hunger, quality 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. World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. Fig. 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. 6. The front-end engineering and design (FEED) study for the project was completed in January 2018. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. Annual output Fig. 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. The document estimated that Colluli would contribute 3% of 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. By. Potash demand is largely driven by the need to increase crop production and by improved potash application rates, particularly in developing countries such as Asia, Africa, and Latin America, where potash has been historically under-applied relative to scientifically-recommended levels (Fig. 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 company expects to start full commercial production in mid-December 2022. Flour was awarded the FEED contract for the Colluli potash project in January 2017. The project is the only known source of potash that allows extraction of the fertilizer in solid form. Gensource Potash : Strategic Business Relationship and Project Update, Analysts Are Bullish on Top Materials Stocks: Albemarle (ALB), Nutrien (NTR), DraftKings To Rally Around 38%? 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. Wall Street Bulls Look Optimistic About Nutrien (NTR): Should You Buy? 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 potassium salt composition in the resource provides the option to diversify the potash product suite as the Project grows. Fig. In the long run, potash consumption is expected to continue to grow as a result of population expansion. 10). development of the project, and the expected significant boost to royalties, Colluli is positioned very close to vital potash markets. as being forecasted back in 2015 has been removed from the supply side (Fig. The project is the only known source of potash that allows extraction of the fertilizer in solid form. endobj
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. Has access to the Ethiopian side of the deposit been guaranteed? 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. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. 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. The agreement can be further extended by three years if mutually agreed upon. In 2023, Botswana expects diamond output to decline by 1%. To open fire on your own disabled [people] is pretty appalling.". (5) a community of investors to bounce off ideas and share information with. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. After the Second World War, it was annexed to Ethiopia. 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. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. 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. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. endobj
It has a Human Development Index of 0.42, which puts it among the ten least-developed countries on the planet. and mag chloride to be commercialized with minimal further processing required. The cost curve of SOP production as of 2018, from the same source as Fig. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. The country also boasts impressive marine tourist sites, a wide range of flora and fauna, and scenic terrain. growth and decent work, industry, innovation and infrastructure, reduced The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. 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. The UN says forced labour and detention without trial are common. But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Potash products including SOP, MOP, and SOP-M all have the potential to be produced at Colluli. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. 4. Image courtesy of Danakali. (MOP) and gypsum, along with rock salt. 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. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Analysis of the potential contribution of Colluli potash project to sustainable development goals in Eritrea. This post has been syndicated from a third-party source. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. (as referred to in ASX announcements of 3 October 2022, 1 December 2022, and 12 January 2023), it . 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. There was a famous incident where some of the disabled tried to walk into town to complain to him, and they were met by the police and the army who opened fire on them. Proudly Researched by: Melanie Miles. 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;i200 years of mine life. One of the essential benefits of having the salts in solid form is that it takes between 2-3 weeks to mine, process and transport our SOP to Massawa Port.