{"id":1131586,"date":"2019-08-08T12:29:42","date_gmt":"2019-08-08T17:29:42","guid":{"rendered":"https:\/\/www.mining.com\/?p=998827"},"modified":"2019-08-08T12:29:42","modified_gmt":"2019-08-08T17:29:42","slug":"danakali-secures-financing-for-power-plant-at-vast-potash-project-in-eritrea","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1131586","title":{"rendered":"Danakali secures financing for power plant at vast potash project in Eritrea"},"content":{"rendered":"<p>Australia\u2019s Danakali (ASX, LON:DNK) scored Thursday its<br \/>\nsecond win this week after the African Export Import Bank (Afreximbank) approved<br \/>\na credit that allows the company to start building a power plant at its world-class<br \/>\nColluli potash project in Eritrea, Africa.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>On Monday, the same bank and the Africa Finance Corporation (AFC) provided the Perth-based company <a href=\"https:\/\/www.danakali.com.au\/images\/stories\/axs-announcements\/2019\/190805_Credit_approval.pdf\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">with $200 million in senior debt finance<\/a>, which is part of the overall project funding package for the development of the asset.<\/p>\n<p>Credit approval is a critical project financing and execution milestone and represents the conclusion of an extensive due diligence process, the company said.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Colluli is expected to become one of the world\u2019s most significant and lowest cost sources of sulphate of potash (SOP), a premium grade fertilizer.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Construction of the mine, 100% owned by Colluli Mining Share<br \/>\nCompany (CMSC), a 50:50 joint venture between the Aussie miner and the Eritrean<br \/>\nNational Mining Corporation (ENAMCO), is estimated to take two and a half<br \/>\nyears.<\/p>\n<p>The project has been called \u201ca game changer\u201d for Eritrea\u2019s<br \/>\neconomy, as it\u2019s expected to become one of the world\u2019s most significant and<br \/>\nlowest cost sources of sulphate of potash (SOP), a premium grade fertilizer.<\/p>\n<p>\u201cThe government will benefit from the longer-term development of the project, and the expected significant boost to royalties, taxation and exports, and from jobs and skills and economic development of the region,\u201d chief executive, Niels Wage <a href=\"https:\/\/www.mining.com\/danakali-to-start-developing-vast-potash-project-in-eritrea-by-year-end\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">told MINING.COM in July<\/a>.<\/p>\n<p>A United Nations report&nbsp;<a href=\"https:\/\/mining.com\/danakalis-potash-project-game-changer-eritrea-un\/\"  rel=\"noreferrer noopener\">published in January<\/a>&nbsp;suggested that Colluli could<br \/>\nsignificantly boost the economy of Eritrea, a country that, until last year,<br \/>\nwas on the UN\u2019s sanctions list.<\/p>\n<p>The document estimated that Colluli would contribute 3% of<br \/>\nthe country\u2019s GDP by 2021 and 50% of the nation\u2019s exports by 2030, while<br \/>\nproviding 10,000 direct and indirect local jobs.&nbsp;<\/p>\n<p>It also identified how the mine could help Eritrea advance its sustainable development agenda, which are 13 priority Sustainable Development Goals (SDGs). These include: no poverty, zero hunger, quality education, gender equality, clean water and sanitation, sustainable economic growth and decent work, industry, innovation and infrastructure, reduced inequalities, climate action, peace, justice and strong institutions and partnerships for the SDGs.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/01\/Colluli_Close_Proximity_to_Coast.png\" alt=\"Danakali\u2019s potash project could be a game changer for Eritrea \u2014 UN\" class=\"wp-image-966466\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/01\/Colluli_Close_Proximity_to_Coast.png 900w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/01\/Colluli_Close_Proximity_to_Coast-300x124.png 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/01\/Colluli_Close_Proximity_to_Coast-768x317.png 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption>Colluli\u2019s location. (<em>Courtesy of <a href=\"http:\/\/www.danakali.com.au\/the-colluli-project\/colluli-positvely-unique\"  rel=\"noopener noreferrer\">Danakali.<\/a><\/em>)<\/figcaption><\/figure>\n<p>In the initial phase of operation, Wage said, Colluli would<br \/>\nproduce more than 472,000 tonnes a year of SOP. Annual output could rise to<br \/>\nalmost 944,000 tonnes if Danakali decides to go ahead with a second phase of<br \/>\ndevelopment, as the project has a possible 200-year plus mine-life.<\/p>\n<p>The asset has potential to produce other fertilizer products, such as Sulphate of Potash\u00a0Magnesium (SOP-M), muriate of potash (MOP) and gypsum, along with rock salt. <\/p>\n<p>There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colluli potash mine has been deemed as a &ldquo;a game changer&rdquo; for Eritrea&rsquo;s economy.<\/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":"default","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":"","ast-disable-related-posts":"","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 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