Ethiopian News, Current Affairs and Opinion Forum
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In the past 15 yrs, about 45-50 million tree seedlings have been planted across the country. Aiming to leave a green legacy, for future generations.
Closing ceremony of the “On-line Seminar on Food Security for Developing Countries” organized by Chinese side, in the Chinese Embassy. Ambassador Cai Ge congratulated the participants and encouraged them to work hard for the people.
Chinese Embassy in Eritrea: @ChinaEmbEritrea
Danakali (ASX:DKM) sulphate of potash project in the Danakil region of Eritrea
By Melissa Darmawan
https://www.finnewsnetwork.com.au/archi ... 38866.html
June 08, 2021
Danakali Limited (ASX:DKM) Executive Chairman Seamus Cornelius discusses the company's Colluli project, including financing and economics, and the positive impact of the project on the region.
Melissa Darmawan: Hello. Melissa Darmawan for the Finance News Network. Joining me from Danakali (ASX:DNK, LSE:DNK) is Executive Chairman Seamus Cornelius. Seamus, nice to meet you and welcome to FNN.
Seamus Cornelius: Thanks very much, Melissa. It's great to be here, and I'm really happy to have this opportunity to talk to your viewers.
Melissa Darmawan: It's great to have you. First off, can you start with an introduction to the company?
Seamus Cornelius: Danakali is a public company listed on the ASX and on the LSE, and we're developing the Colluli sulphate of potash project in Eritrea, in a joint venture with the Eritrea National Mining Corporation.
Melissa Darmawan: By the way, where does the name "Danakali" come from?
Seamus Cornelius: So, the asset, Colluli, is in the Danakil Basin, which is the D-A-N-A part, the "Dana", and then "kali" is salt. So, we just put the two together, Danakali.
Melissa Darmawan: When we did speak to you last, you were in a financing stage with the project. How has that progressed?
Seamus Cornelius: With COVID going on last year, we didn't make as much progress as we thought we'd make. But if I start looking at things from this year in March, we've really gone forward really well. We just did a very important capital raise. It was only just over $20 million, but it's very significant because it lets us start the early work, and it will trigger some further developments on the debt side of the project. So, we have US$200 million dollars of debt signed up, properly documented, and we are working on getting some more senior debt, which has been going very well, and closing the equity gap in a very short frame of time.
Melissa Darmawan: And, Seamus, can you remind us about the economics of the project?
Seamus Cornelius: Danakali is in a 50/50 joint venture with ENAMCO, which is the Eritrean National Mining Corporation. So, when I talk about the numbers now, I'll talk about Danakali numbers. We will be getting US$43 million per year on an average basis, free cashflow. So, that is fantastic for Danakali. When we have two modules, our free cashflow every year will be US$85 million coming to Danakali. So, that's post-finance, post-tax, those two numbers. Our total capital cost, as defined in our FEED study, is about $302 million. There'll be some working capital on top of that, so you're probably looking at somewhere around, altogether, $340 to $350 million, including contingencies and provisions, and actual capital spend. So, you can do the calculations and see that free cashflow that we get as Danakali is really strong compared to the total project capex, most of which is going to be funded by third-party debt at the project company level. So, we think it's really compelling.
Melissa Darmawan: How does that stack up in terms of social and environmental impact, and carbon footprint?
Seamus Cornelius: We're really conscious of the fact that, when you have an asset like Colluli, it will be producing for 200 years, and it's in Eritrea, which is in the Horn of Africa. And we know that there's a lot of population and economic growth coming in that part of the world. And therefore, there's a strong demand for fertiliser. And the fertiliser that we'll produce in the first instance is SOP, sulphate of potash. That's basically the best kind of potash. We're not producing anything other than first-grade fertiliser that goes on first-class food for people to eat, so that's really strong. Besides that, we will indirectly contribute to about 10,000 jobs in Eritrea, which is really significant. The reason I know these numbers, and, more broadly, the kind of impact we will have socially and environmentally, is because very uniquely for us, the United Nations Development Program has done a study just on Colluli. We will have a very positive impact on 13 of the 17 United Nations sustainable development goals. People should look it up. You can find it from the UNDP website.
Melissa Darmawan: Last question. Is there anything else you'd like to add?
Seamus Cornelius: Most people don't know much about the Danakil, but if they know anything, it's that it's one of the hottest and the driest places in the world. So, we have abundant solar energy. We've been collecting wind data for quite a long time. And, more recently, we've started to talk about the geothermal potential that exists at Colluli, because it's right on top of the East African Rift, which is the really large, well-known, well-studied geothermal source of energy. So, those three things combined make it very obvious for us to transition from not being a zero-carbon producer when we turn the plant on, and going as quickly as we can to becoming a zero-carbon producer. It's part of our whole approach to doing the right thing at Colluli, and making sure that we don't just get the economic benefits, but we get all of the social and environmental and other benefits as well -- for our company, for our shareholders, for our partners, but also for all our consumers. I think people will be very happy to take a zero-carbon Colluli SOP and put it onto their plants. We think that drives real value, and also it helps the environment, and it helps people.
Colluli is a really superior asset. It's going to give superior returns, and have superior social and environmental impacts as well. So that's really good. The way that you get involved in Colluli is through Danakali. That's how you can access it. We're committed to honouring the obligations that we have by being involved in an asset like Colluli. These things don't come along very often. As we like to say, there's only one Colluli, and there's only one way to get involved, and that's through Danakali.
Melissa Darmawan: Seamus Cornelius, it was nice to meet you. I look forward to hearing from you on your next update.
Seamus Cornelius: Thanks very much, Melissa.
Eritrean athletes Dolshi Tesfu & Rahel Daniel qualified for the 10000m & 5000m Olympics breaking national records respectively in a qualifying tournament held yesterday in Hengelo, Netherlands. Well done, & congrats to our athletes!!
Empowering the Youth: Generating and Disseminating Wealth
By: Billion Temesghen
https://shabait.com/2021/06/09/empoweri ... eaPrevails
Jun 9, 2021
On the cover page of its 17th edition, the Defense Ministry’s magazine quoted President Isaias Afwerki as saying:
The development pilot projects at Logo and Misilam dams, like other development projects nationwide, are good illustrations of how Eritreans intend to create and distribute wealth. Definitely!There are two things we need to achieve, through hard work … we need to create wealth and distribute wealth.
Many dams have been built over the years in the country, to serve as hubs of social transformation. As we have seen in previous editions of #UnderstandingEritrea, the construction of Logo and Misilam dams has resulted in the empowerment of communities who live in villages around the dams. The communities now have access to potable water and have made a transition from traditional to modern farming and animal breeding, all of which have raised their standards of living.
“Creating and distributing wealth”, is the mantra guiding the future development path of the nation. But, who generates the wealth? The youth, of course! The Government of Eritrea’s scheme of national development heavily relies on its human resource, and the overwhelming majority of the Eritrean population is made up of the youth. With access to free education from primary school all the way to higher education, it is not difficult to imagine the prospects of Eritrea as a nation that is endowed with a lot of educated and skilled youth, who work in a variety of capacities as prime movers of change. During our visit to the Logo and Misilam development projects, we saw firsthand young college graduates and trainees on-site engage in activities that contribute to the social transformation of Eritrea.
For example, the Logo Dam plant has five metal workshops that cater to the construction and assembly of water tanks nationwide. Each unit, composed of hundreds of welders, covers specific geographic areas, allowing the four units to deploy their workforce to different locations simultaneously.
Mr. Semere Tareke, the supervisor whom we met in Metal Workshop 1, said the unit was formed in March 2015 with 80 students from the 27th round in Sawa, who were given intensive vocational training in metal works. Since then, the unit has been recruiting- every year- graduates from the vocational school in Sawa. They leave their trademark in the work they have done even far from the Logo Dam area where they began as amateurs before they became skilled professionals, who contribute immensely to Eritrea’s national development.
Mr. Semere told us that some members of the unit who had been his students at the project have become trainers while others have become experts in making and installing water tanks in other parts of the country. He says that he is gratified to see his former students leave the unit, after having learned important skills. He expressed his appreciation for their enthusiasm and endurance, working in the open air under a scorching sun.
Mr. Semere is currently supervising the training and performance of 180 students, who joined his unit not long ago. So far, his unit has overseen the development of 600 young Eritreans who engage in metal works. They all learned, while being extremely productive. In fact, works related to water distribution operated by the youth from Metal Workshop 1 have been deployed from Adi Halo to Adi qe, Gherghera, Laguyen, Aitiabir, and others. In Asmara, their water tanks can be seen at the hills in Arbaete Asmara and Mai Chehot. The youth from Metal Workshop 1 has also worked at infrastructures for water distribution systems in the Northern and Southern Red Sea regions, including Gahtelay, Massawa, Assab, Wia, and Laite.
The workshop at Metal Workshop 5 is slightly different from the other four as it includes wood, plastic, and designing works. It is the most recent establishment in the Logo project and has 556 students and college graduates, equipped with the latest technologies.
Logo and Misilam projects, have become youth training centers and hubs for social transformation. As we’ve seen in previous editions of #UnderstandingEritrea, we have witnessed the youth working hard everywhere we went. At the community farms, we met agronomists who assist farmers in making the transition from traditional to small-scale commercial farming, and as part of the awareness-raising campaigns, we have seen college graduates travel village to village to teach the communities public health and modern farming. We have also seen how the youth made solar farms and generate power, to be supplied to villages. At Misilam dairy project, we met veterinarians and animal science graduates working hard to multiply imported cattle breed by thousands so that they could be given to farmers all over the country and boost milk production.
Overall, in the journey we made to “understand Eritrea,” we have come to realize that after building dams and collecting water, one of the grand goals of the Eritrean government is empowering the youth by creating opportunities for learning and developing skills to assist the nation reach its development goals that put the peoples’ interest first. Indeed, there is no question that by arming the youth with the needed knowledge and skills Eritrea is poised to multiply its potential to generate and evenly disseminate wealth.