{"id":1117960,"date":"2019-05-27T10:54:22","date_gmt":"2019-05-27T10:54:22","guid":{"rendered":"http:\/\/www.mining.com\/?p=989450"},"modified":"2019-05-27T10:54:22","modified_gmt":"2019-05-27T10:54:22","slug":"danakali-about-to-secure-financing-for-potash-project-in-eritrea","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1117960","title":{"rendered":"Danakali about to secure financing for potash project in Eritrea"},"content":{"rendered":"

Australia\u2019s Danakali\u2019s (ASX, LON:DNK)\u00a0said Monday<\/a> it was about to close debt financing agreements worth $200 million with two African financial institutions, which will allow it fund construction and growth of its flagship Colluli potash project in Eritrea.<\/p>\n

The deals with African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC) could be finalized \u201cany day\u201d and are expected to accelerate equity financing, executive chairman Seamus Cornelius said at Dakali\u2019s Annual General Meeting<\/a>.<\/p>\n

Development of the 1.1 billion-tonnes potash project,\u00a0a joint venture between the Australian miner and Eritrea\u2019s state mining company,\u00a0is expected to take 2 and a half years.<\/p>\n

UN study says the Colluli potash project has the potential to significantly boost Eritrea\u2019s economy and advance the country\u2019s sustainable development agenda.<\/q><\/p>\n

In the initial phase of operation, Colluli would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade of fertilizer. Annual output could rise to almost 944,000 tonnes if Danakali decides to go ahead with a second phase of development, as the project has a possible 200-year plus mine-life.<\/p>\n

Game changer<\/strong><\/h3>\n

A United Nations report\u00a0published in January<\/a>\u00a0suggested that Colluli could boost the economy of Eritrea, a country that until last year was on the UN\u2019s sanctions list.<\/p>\n

The independent study, commissioned and funded by the UN Development Program (UNDP),\u00a0also said the project could \u201cmeaningfully\u201d advance the north African\u00a0nation\u2019s sustainable development agenda.<\/p>\n

The future looks rosy. Danakali already has an offtake agreement with EuroChem, one of the world\u2019s top fertilizer companies, which has agreed to buy at least 87% of Colluli\u2019s output for 10 years.<\/p>\n

The project location has its pros and cons. On one hand, being so close to the Red Sea coast \u00a0by Eritrea’s eastern border, makes it one of the world\u2019s most accessible potash deposits. As mineralization begins at 16 metres, it is also the world\u2019s shallowest. Additionally, its proximity to ports will provide easy access to Asian markets.<\/p>\n

Colluli is also by the border with Ethiopia, with which Eritrea held one of Africa\u2019s deadliest border wars. In June 2018, the ruling coalition of Ethiopia (Ethiopian People’s Revolutionary Democratic Front), headed by\u00a0Prime Minister Abiy Ahmed, agreed to fully implement the peace treaty signed with Eritrea in 2000,\u00a0with peace declared by both parties in July last year.<\/p>\n

\"Danakali\u2019s<\/p>\n

Colluli\u2019s location. (Courtesy of Danakali.<\/a><\/em>)<\/p>\n<\/div>\n

The post Danakali about to secure financing for potash project in Eritrea<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Debt financing agreements worth $200 million could be finalized “any day” and are expected to catalyze equity financing to start the almost 30-month development of the 1.1 billion-tonne Colluli sulphate of potash project, the company said.<\/p>\n

The post Danakali about to secure financing for potash project in Eritrea<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1016,1271,404,369,698,438],"tags":[9,15],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117960"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1117960"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117960\/revisions"}],"predecessor-version":[{"id":1117961,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117960\/revisions\/1117961"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1117960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1117960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1117960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}