Climate Change and its Impact on Insurance Market - Thematic Ukraine PESTLE Insights - A Macroeconomic Outlook Report, Germany PESTLE Insights - A Macroeconomic Outlook Report. 1 0 obj Sign up HERE today to benefit from Laurentian Research's in-depth research and the TNRH platform right away! The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. with the move towards diplomatic relations between the once feuding countries At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . Shallowest known evaporite deposit globally. It is estimated to have about 80,000 archaeological sites. The FEED economic studies envisage the production of 472 Ktpa in module I for development capital of US$302 million and another 472 Ktpa in module II beginning year 6 for additional investment of US$202 million. 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. #goog-gt-tt {display:none !important;} What are the best countries for cryptocurrency adoption? Invest in t. The Colluli Potash Project is located within the Danakil region of Eritrea, approximately 177km south-east of the capital city Asmara. body {top:0 !important;} Across the country, an estimated two-thirds of households are impacted by food insecurity. Demand for fertiliser is driven by population and economic growth which directly translates to food demand. Phase one, involving an estimated capital investment of 220m ($298m), is expected to produce 472,000 tonnes per annum (tpa) of high-quality SOP, while in phase two, the mine is expected to produce up to 944,000tpa of SOP from year six of the project with an additional capital investment of 148m ($202m). Asmara is a beautiful city and awash in colonial Italian architectural gems. It also has access to solar, wind and geothermal energy systems - the East African rift. The project will be developed in multi-modules, with Module I serving as a platform for future growth. 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 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. 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. Enter your email below to receive updates on your featured companies right to your inbox. I bought many shares @ 67 Cents per share, total of 240.000.00 Now the share is under 20 Cents. It is estimated that 49% of the population is Christian and a further 49% is Sunni Muslim. Therefore, the Eritrean government has a strong incentive to see the project be built, in production, and run successfully. Required fields are marked *. Niels Wage, CEO of Danakali, said: I am pleased to announce the appointment of RA International as our preferred accommodation and support services contractor. SOP - a premium grade fertilizer - usually grabs a higher price at US$500-650/t (see here). Colluli, owned 50:50 by Danakali and the Eritrean National Mining Corporation, has a JORC-2012 compliant measured, indicated and inferred resource of 1,289 Mt at 11% K20 equivalent and 7% kieserite. A pre-feasibility study was completed in February 2015, followed by the completion of a definitive feasibility study in November 2015, while the mining licence was granted in February 2017. Colluli is located in the Danakil Depression . Shareholders are slated to . There is also potential for kieserite With planned production of 1m tonnes/year of SOP, it will put Eritrea among the topten potash producers in the world. It also has access to solar, wind and geothermal energy systems the East African rift. The cost curve of SOP production as of 2018, from the same source as Fig. A pre-feasibility study for the project was completed in February 2015 followed by the completion of a definitive feasibility study (DFS) in November 2015, while the mining license was granted in February 2017. Has access to the Ethiopian side of the deposit been guaranteed? 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. As inflation falls, what can be expected from the Bank of England in the months to come? The Perth-basedminer noted that despite covid-19 restrictions, engineering, procurement and construction management (EPCM) activities have continued as scheduled. 1. (MOP) and gypsum, along with rock salt. A comparison of the Colluli and competing greenfield SOP development projects in terms of the distance to the export port, from the same source as Fig. 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. Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20. 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 project is the only known source of potash that allows extraction of the fertilizer in solid form. 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. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. 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. DANAKALI focuses on developing the Colluli potash project in Eritrea, which is wholly owned by Colluli Mining Share Company . .goog-te-menu-value:hover {text-decoration:none !important;} The extracted ore will be sent to a nearby processing plant where it will undergo crushing, flotation, mixing, and drying for the production of the final SOP product. Danakali, currently undervalued and standing for a massive re-rating upon the first production, should be considered by risk-tolerant investors with a long time horizon. It has had a border war with Ethiopia and a clash along the border with Djibouti. Your email address will not be published. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. The Colluli potash project also involves evaporation ponds, a run-of-mine (ROM) pad, a sewage treatment plant, fuel storage tanks, accommodation camp, workshops, warehouses, and a main administrative building. 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. EuroChem will purchase the entire SOP output of the Colluli phase one potash project under a 10-year binding off-take agreement signed in June 2018. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 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. 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 government will benefit from the longer-term 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. 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. Sylvinite and carnallitite both produce potassium chloride, which is then combined with decomposed kainitite to form high purity potassium sulphate. The mine will put Eritrea among the top ten potash producers in the world and impact the global supply chain of high-quality fertiliser. Unlike North Korea, China or Iran, social media is mostly unregulated, but the biggest problem is access to the internet, which is unreliable and expensive. Fig. The water supply for the project is proposed to be met through a pipeline connecting a water desalination plant located at Anfile Bay on the Red Sea coast. Standard, granular and soluble products can be produced for distribution to the market. Development Goals (SDGs). It thus follows we should keep an eye on emerging potash producers. 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. Click HERE for a free trial now. Only 1% of the population has access to the internet, according to the World Bank. The Colluli project requires low upfront development costs and is highly scalable for long-life production. 10. After the Second World War, it was annexed to Ethiopia. Table 1. 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. Have the local Afar people been displaced and supplies to their communities cut to allow access to the site? Business intelligence for leaders in foreign direct investment. 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. We use them to give you the best experience. and mag chloride to be commercialized with minimal further processing required. 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. second phase of development, as the project has a possible 200-year plus World potash demand has grown at an average rate of 2.5-3.0% per year since 2000 (Fig. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. In addition to these benefits our grade control drilling provides us to approach the open cut mine plan with a high degree of selectivity and certainty. On the financial front, a key step was taken last month when Danakali, which has a 50-50 joint venture covering Colluli with the government of Eritrea, signed a $200 million funding mandate. endobj We have recently upgraded our technology platform. 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. function googleTranslateElementInit2() {new google.translate.TranslateElement({pageLanguage: 'en',autoDisplay: false}, 'google_translate_element2');} Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. Last Updated on: 01 December 2022. In food production, potassium is removed from the soil in harvested crops and must be replaced in order to maintain future crop growth. 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. RA, listed . The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022. 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. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. DRA Global was selected as the engineering, procurement, construction and management (EPCM) contractor for the project in September 2018. 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 is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Our people is poor continue!!!! Following the agreement, Collulis position as an economically attractive SOP greenfield development project has been reinforced. These include: No poverty, zero hunger, quality 4. At Colluli, the JORC-2012 compliant mineral resource is estimated at 1,289 Mt at 11% K2O for 260 Mt of contained SOP equivalent. stream To open fire on your own disabled [people] is pretty appalling.". The economy expanded by 2.9% in 2021 and is forecast to surge by 4.8% this year, according to the International Monetary Fund. mine-life. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australia's Danakali and Eritrean National Mining Corporation (ENAMCO). 4 0 obj 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. A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea. Please. The FEED economic estimates, from the same source as Fig. The front-end engineering design (FEED), expected to be These alternative producers require substantial lead times to generate their harvest salts for processing. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 5. However, in July 2018, a peace agreement was finally reached between Afwerki and Ethiopias Prime Minister, Abiy Ahmed. finished in June, will take the company a step closer to the construction phase DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at What are my chances of getting my money back? Located in the Horn of Africa, prolonged periods of conflict and severe drought have had a catastrophic impact on the Eritrean economy and the country is one of the worlds poorest, with income per head estimated at $678 in 2022 (up from $501 in 2010). 4. With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. As part of the agreement with CMSC, owned 50:50 by Danakali and the Eritrean National Mining Corporation, RA will supply, deliver and install a mine accommodation camp as well as a plant administration and service facilities for the Colluli mine site. I have no business relationship with any company whose stock is mentioned in this article. Finance > M-a. . Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. Internal industry and services contribute the majority of the remaining GDP, while agriculture accounts for only 13% (despite employing 80% of the population). The Colluli potash project is located in the Danakil Depression region of Eritrea, in East Africa, approximately 75km away from the Red Sea coast and approximately 177km southeast of capital Asmara. 6. The agreement can be further extended by three years if mutually agreed upon. If you have an ad-blocker enabled you may be blocked from proceeding. 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. SOP in developing regions where the highest rates of population growth are expected, from. This geographical advantaged is unique. Colluli is owned by the Colluli Mining Share Company, a 50:50 joint venture with the Eritrean National Mining Company. 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. 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. The total measured, indicated, and inferred SOP mineral resources at the deposit are estimated to be 1.29 billion tonnes grading 11% K2O. Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. 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. The appointment of RA International is testament to sound execution of our growth strategy, highlighting continued new business momentum with another significant award in the mining sector., Your email address will not be published. Danakali has 100% of its sales locked in for the first ten years and with the option to extend for a further three through a take-or-pay offtake agreement with EuroChem, the Swiss mineral fertiliser producer. Best. "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 project has the world's. Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli sites SOP fertiliser production over a 10-year term, from the Projects date of commissioning. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. 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. growth and decent work, industry, innovation and infrastructure, reduced Italy created the colony of Eritrea in the 19th century around Asmara and gave it its current name. Additionally, it will provide comprehensive camp services incorporating catering, cleaning, laundry, pest and vector control, grounds keeping and waste management. Anyone can write a book, as long as is a white person, you would buy it even a white homeless from NYC. The independent study, commissioned and funded by the UN Development Program (UNDP), assesses a wide range of econometric data and includes . "There is a supportive business environment because mining there is a very strategic industry. 2022 The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. Additional details about the agreement are available in the following announcement >>. Danakali to cash out of Colluli. 9. 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 United Nations Development Programme (UNDP) has indicated Colluli has the potential to significantly boost the Eritrean economy and have a substantial positive impact on the Sustainable Development Agenda of Eritrea. taxation and exports, and from jobs and skills and economic development of the 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. 11. 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. Bloomberg News | December 23, 2022 | 7:38 am Premium Nickel aims to re-open Selebi mine in Botswana The Selebi south deposit has a resource of 11.28 million tonnes grading 0.98% nickel and 1.9% . 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. 11). Fig. The project's potential profitability is helped by soaring potash prices they jumped by 300% during 2021, sitting at above $700 per tonne (CFR Brazil Spot) at the end of October 2021. % The Colluli Potash Project (Project, Colluli ) is 100%. Annual output 7. The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast. Plus500. 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. Thank you for your comment. The document estimated that Colluli would contribute 3% of The removal of Eritrea from the sanction list opened up the country for foreign investments, thus significantly reducing geopolitical risk. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) project under development in Eritrea, Eastern Africa. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. It is actually resistant to the wests oppression in the most pure sense of the term. Fig. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. 2. 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. Colluli boasts a 1.1Bt Ore Reserve and almost 200-year mine life, shallow mineralisation allowing low-cost open-cut mining, simple, proven, low-cost processing, favourable logistics, expansion, diversification and multi-commodity potential. Reverso Context-: 03 October 2022. Net to Danakali's 50% interest, Module I is projected to generate NPV-10 of 242 million, on average delivering an undiscounted FCF of US$43 million per year, with a post-finance IRR of 29.7%; module I&II is projected to generate NPV-10 of 439 million, on average delivering an undiscounted FCF of US$85 million per year, with a post-finance IRR of 31.3% (Table 1). 2023 Glacier Media Group, All Rights Reserved, selling its 50% stake in the Colluli potash project, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, BHP seeks to tighten grip on South Americas copper sector, Quest for worlds biggest diamonds gives De Beers a headache, https://www.hrw.org/world-report/2021/country-chapters/eritrea, https://www.dandc.eu/en/article/how-government-eritrea-became-one-worlds-most-repressive-regimes, https://www.hurstpublishers.com/book/understanding-eritrea-2/, Canada injects $75 million into BHPs Jansen potash mine, Russia raises fertilizer export quota by 500,000 tonnes, World to face potash price crunchas Brazil Potash propels Autazes project toward production, Europes largest rare earths deposit found in Sweden. Image courtesy of Danakali. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. as being forecasted back in 2015 has been removed from the supply side (Fig. This is a report that was prepared by independent consultants and initiated and funded by the United Nations Development Programme (UNDP) on the potential contributions of Colluli to Eritrea's Sustainable Development Goals has been released. 86% of retail CFD accounts lose money. Members of The Natural Resources Hub get exclusive ideas and guidance to navigate any climate. 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. The project has a 200-year lifecycle and is expected to start operating in 2022. Agnico Eagle's EPS beat expectations; guidance maintained. rick and debra waller, how long to hold alcohol enema,
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