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Zmeselo
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Colluli poised to disrupt potash market

Post by Zmeselo » 16 Apr 2021, 22:18



Colluli poised to disrupt potash market

Danakali's massive deposit to serve up world's greenest and cheapest potash




The Colluli project

https://www.miningnews.net/resourcestoc ... ash-market

Australia- and London LSE-listed Danakali is preparing to enrich the world's sustainable farming, crop yields, and food/nutrition security efforts with a pioneering push to develop the soon-to-be sole Sulphate of Potash (SOP) mine in the whole of the crucial supply areas of the European, Middle Eastern, and African timezones.

The development - known as Colluli in East Africa's Eritrea - doesn't just boast a geographical uniqueness, it also brings to the table staggering metrics and green capabilities.

The fully-permitted high grade SOP project, which development started on early last year, has a massive, estimated ore reserve of 1.1 billion tonnes at 10.5% K20 for 203 million tonnes of contained SOP equivalent - providing an enormous mine life of about 200 years.

With lowest quartile mine gates cost of less than US$150/tonne, the first of the two growth phases is to produce 944,000 tonnes per year with NPV of US$439 million and IRR of 31.3%.

And first production is targeted for as soon as next year.
We can produce more SOP - cheaper, easier, and greener - than anyone else can possibly hope to,
Danakali executive chairman Seamus Cornelius said.

The "cheaper" and "easier" aspects come in part by Colluli being the shallowest known evaporite deposit with a mineralisation starting at just 16 metres of depth. And it claims the title of world's closest SOP deposit to a coastline, with the Port of Massawa just 230 km away - giving the project access to one of the busiest trade routes on earth.
This will be the only deposit in the world where we can make SOP from an opencut mine because the deposit is so shallow. We can expand it very easily, because unlike the much deeper potash deposits or brine sources in the rest of the world - we don't have to put capital into sinking a shaft down into the ground or into pumping and evaporating massive volumes of water,
he said.
And longer term, what that means for us is we are in a very advantageous position to dominate the market and to supply SOP not only into the existing market, but also into future market,
he said.

A league of its own

When pushed to draw a comparison to how Colluli shapes up next to existing potash operations, Cornelius is at a loss.

________________________________________________________

We can produce more SOP - cheaper, easier, and greener - than anyone else can possibly hope to

- Seamus Cornelius, executive chairman
________________________________________________________
Well … it's kind of incomparable, really,
he says.
It's in a different league to most mines.
He says the size and scale of it is more akin to gigantic regional commodity hubs like his home state's - Western Australia's - Pilbara iron ore region or the oil producing sector in Saudi Arabia, rather than any one mine.
That's kind of what it is - especially if you look at the whole of the Danakil area,
the chairman said.
We're talking about Colluli having 200 years of mine life and that's because it's in the best part of the Danakil basin. But as you go down to the south and to the west, the deposit continues - it just gets deeper,
he said, noting that there's the potential to keep mining for even longer than that.

Another linking aspect that offers Cornelius a special familiarity even as far from his upbringing in Western Australia as the Horn of Africa is Eritrea's mining code.
It's based on Australian mining codes from the mid-'90s and early 2000s. So, as a Western Australian guy and as someone who studied that law at the university of Western Australia, I feel extremely comfortable there,
he said.
We've found Eritrea to be very transparent and consistent across the board. There's a supportive business environment because mining there is a very strategic industry. So, as a mining jurisdiction - it's got nothing but ticks in all the right boxes,
he said.

Eritrea's positioning in Africa also offers the dual benefits of being well placed to help some of the regions most in need of improved food nutrition security as well as good market demand.
When you come from Australia, or Canada, or the USA, or London - for most people, most of the time, food security is not even a topic,
he said.
But for near where the project is - across Africa, across the Middle East, over to India - for most of the world's population food security is a topic,
he said.
And something like Colluli - because of what Colluli is, because of the fertiliser we will produce, because of the location where we produce it, it's going to have a really direct impact of the lives of billions of people and give them nutritious food security,
he said.

Danakali has 100% of its sales locked in for the first 10 years - and with the option to extend for a further three - with a take-or-pay offtake agreement with EuroChem. As part of the deal, the miner can take advantage of strong market conditions and sell up to 13% of the total through alternative channels where it sees fit - and there are plenty of options.
One of the main crops that uses SOP is coffee. And if you look at the neighbouring countries to Eritrea - they're big coffee producers: Ethiopia, Tanzania, Kenya, and so on. They're right next door to us. We can supply directly to those markets - and we'll be able to do it much more cheaply and with a better profit margin than anyone else can,
he said.

Along with food security, Danakali is focused on one of the world's other great problems: carbon emissions. And this is where Cornelius' and Danakali's green ambitions come in and Colluli offers them up on a plate.
We've been collecting the data for wind and for solar for a long time. We know we're also in a very active geothermal area. So, we have clearly the best three sources of clean energy right there ready for us.

We think as we go forward, a lot of people are going to pay a lot more attention to the carbon inputs of the food and drink they consume - and fertilizer is all about food,
he said.
So, someone who's sitting there drinking their coffee in the morning is going to feel happy about the idea that this coffee is clean, green, zero carbon coffee all the way along the food supply chain, starting with the fertilizer, the same goes for tea, nuts, berries, potatoes and a lot more.


HEAD OFFICE:
• Level 1, 2A/ 300 Fitzerald St, North Perth, WA, 6006, Australia
• Telephone: +61 8 6266 8368
• Email: [email protected]
• Web: www.danakali.com.au

DIRECTORS:
• Seamus Cornelius, executive chairman
• Samaila D. Zubairu, non-executive director
• Taiwo Adeniji, non-executive director
• Neil Gregson, non-executive director
• John Fitzgerald, non-executive director
• Zhang Jing, non-executive director
• Robert Connochie, non-exuective director

MAJOR SHAREHOLDERS:
• African Finance Corporation (16.6%)
• Well Efficient (11%)
• Element 25 and related parties (6.9%)
• Danakali Board and management (4.6%)

Temt
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Re: Colluli poised to disrupt potash market

Post by Temt » 16 Apr 2021, 22:48



Dawi
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Re: Colluli poised to disrupt potash market

Post by Dawi » 16 Apr 2021, 22:56

Zmeselo wrote:
16 Apr 2021, 22:18
One of the main crops that uses SOP is coffee. And if you look at the neighbouring countries to Eritrea - they're big coffee producers: Ethiopia, Tanzania, Kenya, and so on. They're right next door to us. We can supply directly to those markets - and we'll be able to do it much more cheaply and with a better profit margin than anyone else can,
Ethiopia has plenty of Potash of her own; at least to cover her vast need of fertilizer for agriculture. I am curious how complex is producing fertilizer out of Potash? Can small scale producers get involved?

Hope the two countries coordinate when developing such resources if they can; with good future planning to not create conflict with each other down the line.


[[..The Dallo potash deposit in Ethiopia is located some 100 km from the Red Sea coast and the port of Mersa Fatma in Eritrea and 600 km via road from Djibouti’s deep water port.

Allana’s deposit has a depth below surface of 50 – 100 meters in the western portion, and dips to 700 to 800 metres in depth to the east. Colluli’s deposit has a depth of only 16 – 70 meters and that makes it the shallowest known potash deposit in the world. This opens up the potential for both open pit and solution mining in both deposits.

In comparison, the deposits in Saskatchewan, where the depths range between 1,500 and 2,000 meters, and Russia, where they range from 1,800 to 2,000 meters, entail solution and underground mining...]]

On the other hand, land locked Ethiopia needs to wait until the completion of the new Tadjoura port in Djibouti in Q1 2016. In the meantime, Allana is completing the final elements of the Allana Tadjoura Potash Terminal facilities with the Djibouti Port Free Zone Authority (DPFZA). Construction of the 120 km upgraded highway from the Djibouti side, 300 km highway road to the Dallo property along with a 216 km Asayita – Tadjoura railway projects are expected to start by the end of this year.

If all was well with Eritrea, the Dallo project in Ethiopia would have a distance of only 100 km to the coast.

President and CEO of Allana Resources, Farhad Abasov says:

“Obviously it would make commercial sense to transport the material from Ethiopia across the border to Eritrea. It would be ideal if this could overcome any political tensions between the two countries, but should that be difficult, then Djibouti would be the alternative export route, with the potash trucked there.”

“There is no entrenched animosity between the people of Ethiopia and Eritrea but rather qualitative differences in opinion between the two countries,” Abasov adds.

With recent strategic financial support it secured from Israel Chemicals Ltd (ICL), International Financial Corporation (IFC), and Liberty Metals and Mining Holdings, LLC, Allana Potash would finalize construction of a fertilizer production plant within a year and start using potash from Dallo as an input in 2015.

On the other hand, South Boulder Mine decided to completely re-write the original Colluli potash mine plan that was devised by the previous management after it was identified that they only includes Sylvinite rock (which is only 16% of the total resource) while considering a large quantity of economic Carnallitite and Kainatite rocks as waste.

The new management of South Boulder, however, commenced a new Definitive Feasibility Study (DFS) by processing the Carnallitite and Kainitite mineralization in addition to the Sylvinite. This approach significantly extends the Colluli mine life well beyond 200 years.

The Colluli DFS (the final necessary report before construction can commence) is expected to be completed in Q1 2015.

Zmeselo
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Re: Colluli poised to disrupt potash market

Post by Zmeselo » 16 Apr 2021, 23:34

Temt wrote:
16 Apr 2021, 22:48

Brother,


Zmeselo
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Re: Colluli poised to disrupt potash market

Post by Zmeselo » 17 Apr 2021, 03:01

Man of principles! Remember, this is in 1996. 25 years ago. Sounds like from yesterday, when seeing what's happening these days. His stance on issues never changes with the tides and his reading of the region and his vision of its future, 2nd to none. Almost prophetic, even. The following video is on Egypt, the Nile & the Red Sea.

Those who have a hard time understanding tgrgna, it's translated into English. Just push, that tool icon on the video.




Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 17 Apr 2021, 05:16

:shock: :shock: :shock: Oh, my Goodness! I get goosebumps when I think about the impact our Eritrean Potash mining project will have on the lives of billions of people around the world, in ways that will put all international aid agencies out of business. I can truly see the mighty hand of God in all this.

When you come from Australia, or Canada, or the USA, or London - for most people, most of the time, food security is not even a topic, he said.

But for near where the project is - across Africa, across the Middle East, over to India - for most of the world's population food security is a topic, he said.

And something like Colluli - because of what Colluli is, because of the fertiliser we will produce, because of the location where we produce it, it's going to have a really direct impact of the lives of billions of people and give them nutritious food security,



Jaegol
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Re: Colluli poised to disrupt potash market

Post by Jaegol » 17 Apr 2021, 09:52

I always wonder why the ferenjis obsession with Eritrea? Is it just it’s strategically important location... Red Sea corridor... or/ also, it’s blessed with natural resources... it’s probably both plus stubbornly proud habesha people with can do attitude and with no problem telling the ferenjis “mind your own business “ “leave me alone” 👏🏼👏🏼👏🏼

Woyane was a ferenjis slave that died and as long as the ferenjis don’t hire another neighbor to be their telalaki... Eritrea’s future is bright...

Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 17 Apr 2021, 14:02

The World-Class Potash mining project will bring Eritrea to a level of prosperity unimaginable a decade ago. And when Ethiopia enters the market, that will be the game changer. No more borrowing money from the international banking cartels - the loan sharks -- The World Bank and the IMF! African countries helping fellow Africans to become food sufficient by supplying them with fertilizer don't need western food aid. That is African liberation! That's what Morgan Heritage said... Hear this... 8)


Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 18 Apr 2021, 00:58


Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 18 Apr 2021, 12:37

Eritrea is building a new port at Anfile bay for potash exports from its world-class Colluli potash deposits to shorten travel distance to less than 87 kilometers. True to the old adage, "A rising tide lifts all boats", Ethiopia also stands to gain from having access to this new port, making it economically feasible to export its potash deposit and join the ranks of African mining giants. Gone are the days when the slave agame can hold back Ethiopia and keep it from achieving its fullest economic potential. 8) :mrgreen:


Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 18 Apr 2021, 16:51




Digital Weyane
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Re: Colluli poised to disrupt potash market

Post by Digital Weyane » 18 Apr 2021, 18:24

ኻው ኤርትራ ቦታሽ ማዳበርያ እላተበደርና ትግራይና በለስ ልበለስ ህንገብራ እይና።

ትግራይ ዝዓደይ የትንብዕለየ፣ አሃይ ላልመየ፣
ወስፋታም ግዝየ ይሓለፈሎየ፣ ላይእማነየ፣

Weyane.is.dead
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Re: Colluli poised to disrupt potash market

Post by Weyane.is.dead » 18 Apr 2021, 18:29

Brilliant 8) 8) 8) 8)
Fiyameta wrote:
18 Apr 2021, 12:37
Eritrea is building a new port at Anfile bay for potash exports from its world-class Colluli potash deposits to shorten travel distance to less than 87 kilometers. True to the old adage, "A rising tide lifts all boats", Ethiopia also stands to gain from having access to this new port, making it economically feasible to export its potash deposit and join the ranks of African mining giants. Gone are the days when the slave agame can hold back Ethiopia and keep it from achieving its fullest economic potential. 8) :mrgreen:


Zmeselo
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Re: Colluli poised to disrupt potash market

Post by Zmeselo » 18 Apr 2021, 18:35




Digital Weyane wrote:
18 Apr 2021, 18:24
ኻው ኤርትራ ቦታሽ ማዳበርያ እላተበደርና ትግራይና በለስ ልበለስ ህንገብራ እይና።

ትግራይ ዝዓደይ የትንብዕለየ፣ አሃይ ላልመየ፣
ወስፋታም ግዝየ ይሓለፈሎየ፣ ላይእማነየ፣

Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 22 Apr 2021, 13:17

8) 8) 8) 8)


Fiyameta
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Re: Colluli poised to disrupt potash market

Post by Fiyameta » 02 May 2021, 22:04


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