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. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. I have taken a starter position and plan to build a position of meaningful size in the next couple of years. BHP officials met with Argentinian authorities this week, expressing interest in increasing investments in the San Juan province. Danakali (DNK) - Technical Analysis. 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. The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). Image courtesy of Danakali. The Colluli Potash Project (Project, Colluli ) is 100%. Plus500. The UN says forced labour and detention without trial are common. These include: No poverty, zero hunger, quality Posted by Daniel Gleeson on 21st August 2020. Colluli contains three potassium-bearing salts in solid form, namely. 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. It also has access to solar, wind and geothermal energy systems the East African rift. 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 document estimated that Colluli would contribute 3% of Thank you for your comment. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. .goog-text-highlight {background-color:transparent !important;box-shadow:none !important;}
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. In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), has been called a game-changer for Eritreas economy, as it is expected to become one of the worlds most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertiliser. 4. He is one of the world's most brutal and paranoid dictators and has repressed the population for many decades. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. A binding offtake agreement for up to 100% of Module I SOP production, and a US$200M debt financing term sheet have been executed, and all material permits are in place. could rise to almost 944,000 tonnes if Danakali decides to go ahead with a Ok as claimed above I dure hope the dictatorship in place will be nice enough this time around to be honest and work for the sake of the people and show the truth about the budgetary issues to the public unlike what the dictatorship did on the gold mining sector.we Eritreans cannot wait to see the benefits of the potash industry on projects that will enhance peoples living standards and create a sustainable economic growth as stipulated on the government sustainable development goals and agendatime only will tell if the dictatorship will have a changing to work for the betterment of the country but not gew clicks. 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. It has had a border war with Ethiopia and a clash along the border with Djibouti. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. Image courtesy of Danakali. 5. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Fig. The agreement encourages the maximisation of netback pricing of SOP produced in the Colluli, which will become the first Africa-based fertiliser provider in the supply chain of EuroChem. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. 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). We have recently upgraded our technology platform. After the Second World War, it was annexed to Ethiopia. I focus on identifying high-quality deep values in the natural resources sector and undervalued wide-moat businesses, an investment approach that has proven to be extremely rewarding over the years. 1 0 obj
Artists impression of the plant at the Colluli project. Simplified process flow for the production of SOP from the Colluli resource, from this source. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. In 2023, Botswana expects diamond output to decline by 1%. Asmara is a beautiful city and awash in colonial Italian architectural gems. Colluli is positioned very close to vital potash markets. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? It then plans to distribute 90% of the net proceeds to shareholders and will continue as a listed company to identify new projects and potential new alternative growth opportunities. endobj
Shareholders are slated to . The project has a 200-year lifecycle and is expected to start operating in 2022. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. Fig.
Table 1.
EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Profit was boosted by higher metal grades and prices. I'd like to emphasize that the articles contributed by these authors are the product of their respective independent research and analysis. You are talking about the garbage written by Plaut ? But when [Afwerki] discovers that his authority is being questioned after independence, he begins reacting in the same way. Eritrea was, until 2018, on the UNs sanctions list. 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. 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. Despite funding setbacks last year, Danakali says that Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022. and then onto production in 2022, Danakali said. (5) a community of investors to bounce off ideas and share information with. 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. During the long struggle, the people of Eritrea managed to forge a common national consciousness but, with peace established, they faced the task of overcoming their ethnic and religious differences in order to raise the country from poverty made worse by years of drought, neglect and war. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. 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. Abu Dhabi has established a growing reputation as a source of innovation due to forward-thinking projects across sectors including energy, infrastructure, sport, culture and tourism. 3). The Colluli project requires low upfront development costs and is highly scalable for long-life production. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. Status: Design. 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. 4. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Click to follow this blog and receive notifications of new posts by email. Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. 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. Colluli has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. A number of unique characteristics make Colluli one of the world's largest and lowest-cost deposits of SOP. Niels Wage, CEO of Danakali, said: "We are very pleased to announce the appointment of Aggreko as our single power provider. 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. 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. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. The owner and developer of the project is the Colluli Mining Share Company (CMSC), a 50:50 joint-venture between Danakali and the Eritrean National Mining Company (ENAMCO).