In 2023, Botswana expects diamond output to decline by 1%. 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 deposit stretches across the border into Ethiopia. Proudly Researched by: Melanie Miles. I based my assertion of Eritrea being ONE of the most oppressive regimes on a series of reports by human rights advocates such as Human Rights Watch (https://www.hrw.org/world-report/2021/country-chapters/eritrea) as well as sites such as D+C (https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes). Eritrea has managed to fall out with and then mend fences with every one of its neighbouring countries. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. There is also potential for kieserite The shortfall of projected and actual global potash capacity, from this source. RA, listed . The 600 person camp capacity is exclusive of camp services personnel, which will have an additional camp, provided by RA, located within the overall camp boundary. Colluli contains three potassium-bearing salts in solid form, namely. The government will benefit from the longer-term It also has access to solar, wind and geothermal energy systems the East African rift. It describes Eritrea as "a dictatorship in which the media has no rights". Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Morgan Leighton. 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. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. and then onto production in 2022, Danakali said. In addition to SOP, MOP, and SOP-M producible at Colluli, Danakali can also produce rock salt, kieserite, gypsum, and magnesium chloride, upon the completion of the Anfile Bay port. second phase of development, as the project has a possible 200-year plus The proposed mine is located within the Danakil Depression, part of the Great Rift Valley on the Eritrea - Ethiopia border, with export facilities on the Eritrean Red Sea coastline. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Notify me of follow-up comments by email. 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. "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. 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. The Report was undertaken during 2018 by senior economists on behalf of the UNDP. Fertiliser is a key component to ensure world food security in the future. Only 1% of the population has access to the internet, according to the World Bank. 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. The Colluli Potash Project (Project, Colluli ) is 100%. 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. In the long run, potash consumption is expected to continue to grow as a result of population expansion. It thus follows we should keep an eye on emerging potash producers. 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. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. 3. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. The Project has unrivalled potash product versatility. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. We use them to give you the best experience. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. Best. He is an alone, he is DICTATORSHIP! Please. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 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 removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. Our 3 Top Picks. 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. He covered foreign investment in Latin America for 13 years and for the past three years has lived in sub-Saharan Africa and written widely about the subject from that continent's perspective. 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. Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritreas key import/export facility. 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. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. The SOP quality spectrum, from the same source as Fig. Simplified process flow for the production of SOP from the Colluli resource, from this source. 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 After all considerations and government taxes, Danakali said it expects to receive approximately $121m. Danakali Limited is a resource company focused on the Colluli SOP (Sulphate of Potash) Project in Eritrea, East Africa. Looking for a helping hand in the market? There are many sources of potassium, including. Although the total productive life is estimated to be approximately 200 years, the current plan calls for the development of the mine in two stages to support an initial operational life of 60 years. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. 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. 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. 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. By. This long-lasting tension has led to Eritrea's militarisation. 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. <> It is a member of the African Union, the UN and the Intergovernmental Authority on Development which deals with issues around drought and desertification in the Horn of Africa but it is the only African country (out of 55) not to sign up to the African Continental Free Trade Area, the huge free trade area that went live on 1 January 2021. Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Development is already underway with expected production in 2022. Colluli has been largely de-risked in terms of. The Danakil Depression is an emerging potash province in Eritrea and Ethiopia. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. Only 12% of the total land area is suitable for farming in part due to the countrys rocky and mountainous terrain but also due to a persistent drought that afflicts much of the remaining countryside. DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at What Are the Best Fertilizer Stocks? 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. In spite of the projected long-term growth of potash demand, the building of new production capacity has been lagging in the past few years, thanks to low potash prices. 4. 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. 4. 6. However, the country is home to one of the world's biggest potash deposits which straddles the border with Ethiopia. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. The agreement can be further extended by three years if mutually agreed upon. The company has completed a front-end engineering design for the production of potassium sulphate, otherwise known as sulphate of potash or SOP. Producer of taxation and exports, and from jobs and skills and economic development of the Potash, an important fertiliser, could be a game changer for Eritrea and other African countries. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. Potassium is one of three key fertiliser macro-nutrients essential for healthy soil and plant growth. 9). Unlike other potash producing basins of the world, the Danakil region contains a variety of potassium-bearing salts, enabling the opportunity to generate a range of potash fertilizers. The government monitors telephone and internet traffic and runs an extensive domestic surveillance system. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). If you continue using our website, we'll assume that you are happy to receive all cookies on this website. What are the best countries for cryptocurrency adoption? The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. 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. The Danakil salt basin, in Eritrea, is a positively unique example as it is one of only very few known potash deposits where kainite, a sulphate bearing mineral key for potassium sulphate production, is found in solid form. Over the past two decades, many hundreds of thousands of Eritreans have fled military conscription and economic uncertainty in their home country and Eritrea has become a major source of migrants and refugees to Europe, in particular to Sweden, Germany and the Netherlands. 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. (5) a community of investors to bounce off ideas and share information with. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. 1 0 obj 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. AustraliasDanakali(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 (ENAMCO) to build the mine. Test work on the Colluli salts has been concluded and the process flow design frozen which indicates the Colluli process using filtered sea water will produce SOP at volumes we expect and at the high-grade spec the world requires. function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ?