4. 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. It is actually resistant to the wests oppression in the most pure sense of the term. Our 3 Top Picks. About 55% of the Eritrean population is Tigrinya while 30% is Tigre, but there are a number of other smaller ethnicities including Saho and Kunama. There is also potential for kieserite It thus follows we should keep an eye on emerging potash producers. Eritrea has huge tourism potential, but it is hard for foreign visitors to obtain a visa. What are my chances of getting my money back? Adjusted net income of $0.52 beat the consensus estimate of $0.43. Open-cut solid salt mining beats underground solid salt mining, lacustrine brine, and playa brine in operating costs. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. 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% . Eritrea was, until 2018, on the UNs sanctions list. Some people have been in national conscription for more than 20 years. Your email address will not be published. The company expects to start full commercial production in mid-December 2022. The above mineral reserves support 215 years of SOP production at 944 Ktpa as envisaged in modules I and II development plan. On July 9, 2018, a joint declaration of peace and friendship was signed between Eritrea and Ethiopia. All Eritreans are subject to conscription into the military and can be compelled into forced labour that the UN says effectively abuses, exploits and enslaves them for years". Colluli is a major sulphate of potash (SOP) project located in Eritrea, Eastern Africa. The front-end engineering and design (FEED) study for the project was completed in January 2018. The best energy and mining stock ideas with multibagger potential. products, such as Sulphate of PotashMagnesium (SOP-M), muriate of potash Over 100kg of Colluli product was tested at Ludman Industries in the USA for product compaction behaviour. Colluli will be a simple open-cut mining operation utilising truck and shovel methods complemented by continuous surface miners. Select LanguageChinese (Simplified)EnglishGerman I am not receiving compensation for it (other than from Seeking Alpha). 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. Based on what evidence? Some 7 Mt of potash capacity as being forecasted back in 2015 has been removed from the supply side (Fig. A United Nations reportpublished last yearsuggested that Colluli could significantly boost Eritreas economy. Eritrea has historically struggled to attract large investments because of its unfavourable business climate. It assesses a wide range of econometric data and includes findings . Both are below. The plant administration and services facilities will incorporate administration offices, medical clinic, warehouses, and workshops (see graphic above, credit: RA International). 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. Eritrea had been under UN sanction per Security Council Resolution 1907 since December 23, 2009, for the government's role in aiding Al-Shabaab in Somalia and refusing to withdraw troops from its disputed border with Djibouti following a conflict in 2008. Danakali is developing the tier-1 Colluli potash project, Eritrea, which boasts the world's lowest costs and >200 years of mine life. The Colluli potash project is a low-cost, long-life sulphate of potash (SOP) fertiliser project under development by the Colluli Mining Share Company, a 50-50 joint venture partnership between the Australian start-up Danakali and the Eritrean National Mining Corporation. Fig. The asset has the potential to produce other fertilizer (. The open-cut, high-grade potash project is being developed by Colluli Mining Share Company (CMSC), a 50:50 joint venture partnership between Australias Danakali and Eritrean National Mining Corporation (ENAMCO). After the Second World War, it was annexed to Ethiopia. At a SOP price of US$650/tonne, annual production would generate revenue equivalent to . Discover how your business could benefit from a base in Masdar Citys economic free zone, download this free whitepaper. 9). The front-end engineering design (FEED), expected to be 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. (3) various tools to aid your investment decision making, (4) trade alerts and multiple thematic weekly newsletters and. The project also involves the construction of a heavy fuel oil-based power plant on-site to meet the electricity requirement. Jason Mitchell is a senior editor at Investment Monitor, with a specialisation in emerging markets. Masdar City Free Zone, in the United Arab Emirates capital, offers a hassle-free environment in which companies can operate. Our people is poor continue!!!! 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. In 2019, the country received only $67.1m in foreign direct investment (FDI) inflows against $61m in 2018, according to the World Bank. In comparison, Tessenderlo (OTCPK:TSDOF) and Compass Minerals (CMP) have a P/FCF multiple of 10.0X and 20.9X, respectively. (MOP) and gypsum, along with rock salt. It is estimated to have about 80,000 archaeological sites. Is this happening to you frequently? In some cases, depending on the ambient conditions, this process can take over two years. The miner said it would use the remaining cash about $12 million to identify new projects and potential new alternative growth opportunities.. Over the next three decades, almost 95% of the population growth will occur in Africa, India, and South-East Asia. The border lands mostly arable are unusable for farming purposes, because of unexploded land mines left over from the war of independence. The production of other agricultural and salt products, including Rock Salt, Kieserite, Gypsum and Magnesium Chloride, is also possible from the Colluli resource. The border with Sudan was closed until early 2019 because relations were so bad. 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. In 2019, it was estimated that the country had a total of 607,900 emigrants, including 217,472 living in Ethiopia, 188,411 in Sudan, 83,600 in Europe and 35,745 in the US, according to Migrants Refugees website. The project has been largely derisked with regard to geopolitics, infrastructure, off-take, and financing. Danakali to cash out of Colluli. We are confident in RA Internationals capabilities to deliver a high-quality product and service.. The decline is mainly due to a drop in production expected at Barrick Gold's Somilo/Gounkoto mine and B2Gold's Fekola mine. The Danakil Depression is located in the Southern region of Eritrea and extends over 300km into Eastern Ethiopia. Eritrea is an ancient civilisation dating back thousands of years and was inhabited by early humans. "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. Information about Eritrea and the Horn of Africa. RA, listed on the London Stock Exchanges AIM board, specialises in building, operating and maintaining facilities in remote and challenging conditions across Africa, providing complex humanitarian, governmental, mining, and other commercial developments and services, Danakali says. 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. Table 1. body {top:0 !important;} The Company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO). View the original article here. Pilot tests from the Colluli salts have generated product samples for marketing purposes which are now being distributed to prospective customers. 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. 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. There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. Posted by Daniel Gleeson on 21st August 2020. After all considerations and government taxes, Danakali said it expects to receive approximately $121m. 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. 2 0 obj Eritreas north-eastern and eastern parts have an extensive coastline along the Red Sea, strategically located along the Maritime Silk Road. ,and the value is around 67,000.00 . Front End Engineering Design (FEED) strongly confirms Colluli as one of the worlds most economically attractive, and fundable SOP greenfield development project. In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). Reminders. 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. However, China has set its sights on the country and perhaps it will receive large amounts of Chinese FDI in the future. The Colluli Potash Project (Project, Colluli ) is 100%. 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. Colluli Potash Project, Eritrea. I think you should research about th e author. GDP dropped by -0.6% in 2020 in the wake of the Covid-19 pandemic and a locust invasion. Colluli Potash Project is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). 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. 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. I have no business relationship with any company whose stock is mentioned in this article. In the long run, potash consumption is expected to continue to grow as a result of population expansion. Surface mining allows controlled extraction, predictable production rates and efficient stockpiling of additional economic salts know to us. 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. In November 2020, a conflict broke out in the mountainous region of Ethiopia, called Tigray, between Tigrayan forces and the Ethiopian federal troops. I wrote this article myself, and it expresses my own opinions. Danakali is just one of many deep-value natural resources ideas covered by Laurentian Research. Colluli is located about 75 kilometres from the Red Sea coast, making it among the most accessible premium potash deposits globally. Fig. 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. "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. The above advantageous features combine to make Colluli the lowest-cost SOP producer outside of China (Fig. stream function GTranslateGetCurrentLang() {var keyValue = document['cookie'].match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? We have recently upgraded our technology platform. 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. The project has the worlds largest JORC compliant reserve at 1.1 billion tonnes. 3). 7. 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. Infrastructure to be developed and upgraded outside the Colluli mining license area includes sea water intake and treatment at Anfile Bay; pipeline and access corridor of 87km between Bay area and the Colluli process plant and the Colluli site road of 57km connecting Colluli to Marsa Fatuma. Flour was awarded the FEED contract for the Colluli potash project in January 2017. A comparison of Colluli with vertically-integrated SOP producing competitors, from the same source as Fig. It hosts the youngest evaporite deposit and the largest unexploited potash basin in the world. Fig. 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). Fig. The country only has one preferential trade agreement in force (with Italy) and is not a member of the World Trade Organisation. advance its sustainable development agenda, which are 13 priority Sustainable % DANAKALI Ltd., Eritrea - Colluli Potash Project | Aktienforum | Aktien Forum | Diskussionsboard | Community von finanzen.at In November 2021, Eritrea also signed a memorandum of understanding with China to join its Belt and Road Initiative. I have no business relationship with any company whose stock is mentioned in this article. 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. Eritrea has one of the most erratic economies in the world, partly due to chronic drought and highly variable agricultural output: its GDP surged by 31% in 2014 before plummeting by -20.6% in 2015. The relative location of the Colluli resource to these critical markets gives it a significant logistics advantage and unrivalled access to the potash markets of the future. According to the article below the mine will require 1,115 workers during the construction phase and 600 thereafter. Profit was boosted by higher metal grades and prices. A Front-End Engineering Design (FEED) study confirmed an advanced stage and economically attractive Project. This article lost credibility in characterizing the country of Eritrea as most oppressive regime. The west really needs to let go of calling every developing nation that doesnt bend at its will oppressive. It has a geographic area of 117,600km2, making it slightly larger than Bulgaria. One-third of the country's GDP is made up of remittances sent home by Eritreans living in Europe and other developed countries. 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. ( source):Danakalihttps://www.danakali.com.au/You can play an important role in investing in a truly once in a lifetime business opportunity. The project, 50/50 owned by Australian mining company Danakali and the Eritrean Government, is rapidly progressing towards construction. 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 fertilizer. Additional details about the agreement are available in the following announcement >>. As inflation falls, what can be expected from the Bank of England in the months to come? 2023 Glacier Media Group, All Rights Reserved, Botswana mining growth seen flat amid dim diamond outlook, Harmony Gold CEO says gold sector consolidation inevitable, Quest for worlds biggest diamonds gives De Beers a headache, Mali forecasts 3.5% decline in industrial gold output in 2023, 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. produce more than 472,000 tonnes a year of Sulphate of Potash. inequalities, climate action, peace, justice and strong institutions and could rise to almost 944,000 tonnes if Danakali decides to go ahead with a It also has access to solar, wind and geothermal energy systems the East African rift. 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. Fertilizer potash is needed in the sustainable production of grains, oilseeds, fruits, and vegetables. The stock seems to be agitating for a breakout in recent weeks (Fig. 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. Fig. Send Me Updates. The company's strategy targets the development of a world-class potash project that will become pivotal for global and African agriculture. the countrys GDP by 2021 and 50% of the nations exports by 2030, while Potash supply has historically been controlled by production cartels, such as a German export monopoly in the early 1900s, the agreement strategies between German and French producers until 1939, and then oligopolistic competition prevailing on world markets (see here). This geographical advantaged is unique. Reverso Context-: 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 11). Colluli is 75km from the Red Sea coast, providing unrivalled future logistics potential. 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. As a tier-1 potash deposit with a number of unique advantages to its favor, the fully-permitted Colluli carries little underground geological risk. Danakali (ASX: DNK) is the 50% owner of the Colluli Potash Project located in Eritrea. "The analysis of direct impacts of Colluli potash project and its potential contributions to the sustainable development agenda in Eritrea is focused on five main areas," the report states. Eritrea one of the least accessible countries for humanitarian organisations, Searches, Arrests, and Tension in Eritrea, Eritreas jailed journalist exhibition opens in UK Parliament, Dispute over Patriach splits Norwegian Orthodox church in two, Twenty one years after being jailed, Eritreas independent journalists are remembered in the British Parliament. 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). A port development at Anfile Bay could assist in unlocking this potential. 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. 11. It nosedived again in 2017, this time by -10%, before jumping by 13% in 2018. The shortfall of projected and actual global potash capacity, from this source. It also said that all vendor and contractor packages have now been received. It is strategically important as it has access to the Red Sea, the Suez Canal and to Europe, as well as to the waters of the Persian Gulf and beyond to the Indian Ocean. The Project has unrivalled potash product versatility. Colluli is without peer on capital intensity and production capacity with the ability to expand rapidly. There are 70 Subscribers monitoring this project. It has had a border war with Ethiopia and a clash along the border with Djibouti. 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. The JORC-2012 compliant mineral resource estimate, from this source. 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. 4 0 obj Best. 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. The Colluli project lies in an area that saw detailed geological and geochemical work by USAID and US Geological Survey with the Eritrean Ministry of Mines and Energy.
Jeff Garcia Wife Carmella,
Janiah Barker Transfer,
3683 Demooney Rd, Atlanta, Ga 30349,
Lisa Tremblay Age,
Beef Stroganoff Vermouth,
Articles C