{"id":1146683,"date":"2019-10-30T08:00:52","date_gmt":"2019-10-30T14:00:52","guid":{"rendered":"https:\/\/www.mining.com\/?p=1005608"},"modified":"2019-10-30T08:00:52","modified_gmt":"2019-10-30T14:00:52","slug":"danakali-earmarks-1-8m-to-take-eritrean-potash-project-off-the-ground","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1146683","title":{"rendered":"Danakali earmarks $1.8m to take Eritrean potash project off the ground"},"content":{"rendered":"<p>Australia\u2019s Danakali (ASX, LON:DNK) is moving its world-class Colluli potash project in Eritrea, Africa, closer towards development after raising $502,000 from investors in the quarter ended in September, which added to <a href=\"https:\/\/www.mining.com\/danakali-secures-financing-for-power-plant-at-vast-potash-project-in-eritrea\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">two other major credits received in the period<\/a>.<\/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>Delivering <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.danakali.com.au\/images\/stories\/axs-announcements\/2019\/20191030_Quarterly.pdf\" >quarterly results<\/a>, the Perth-based company said it has $4.9 million in working capital, adding that it plans to spend $1.8 million from now until the end of December, directing $1.4 million construction of the mine.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Colluli has the potential to produce 944,000 tonnes of SOP, a premium grade fertilizer, over its 200-year plus mine-life.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Colluli, a 50:50 joint venture<br \/>\nbetween Danakali and the Eritrean National Mining Corporation (ENAMCO), has<br \/>\nbeen called \u201ca game changer\u201d for Eritrea\u2019s economy, as it\u2019s expected to become<br \/>\none of the world\u2019s most significant and lowest cost sources of sulphate of<br \/>\npotash (SOP), a premium grade fertilizer.<\/p>\n<p>\u201cThe government will benefit from<br \/>\nthe longer-term development of the project, and the expected significant boost<br \/>\nto royalties, taxation and exports, and from jobs and skills and economic<br \/>\ndevelopment of the region,\u201d chief executive, Niels Wage&nbsp;<a href=\"https:\/\/www.mining.com\/danakali-to-start-developing-vast-potash-project-in-eritrea-by-year-end\/\"  rel=\"noreferrer noopener\">told MINING.COM in July<\/a>.<\/p>\n<p>The development of the Colluli<br \/>\npotash projects coincides with the move towards diplomatic relations between<br \/>\nthe once feuding countries of Eritrea and Ethiopia, which officially declared peace<br \/>\nin July last year.<\/p>\n<p>A United Nations report\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/mining.com\/danakalis-potash-project-game-changer-eritrea-un\/\" >published in January<\/a>\u00a0suggested that Colluli could significantly boost the economy of Eritrea, a country that, until last year, was on the UN\u2019s sanctions list.<\/p>\n<p>The document estimated that Colluli would contribute 3% of the country\u2019s GDP by 2021 and 50% of the nation\u2019s exports by 2030, while providing 10,000 direct and indirect local jobs.\u00a0<\/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>It also identified how the mine<br \/>\ncould help Eritrea advance its sustainable development agenda, which are 13<br \/>\npriority Sustainable Development Goals (SDGs). These include: no poverty, zero<br \/>\nhunger, quality education, gender equality, clean water and sanitation,<br \/>\nsustainable economic growth and decent work, industry, innovation and infrastructure,<br \/>\nreduced inequalities, climate action, peace, justice and strong institutions<br \/>\nand partnerships for the SDGs.<\/p>\n<p>In the initial phase of operation,<br \/>\nWage said, Colluli would produce more than 472,000 tonnes a year of SOP. Annual<br \/>\noutput could rise to almost 944,000 tonnes if Danakali decides to go ahead with<br \/>\na second phase of development, as the project has a possible 200-year plus<br \/>\nmine-life.<\/p>\n<p>The asset has the potential to<br \/>\nproduce other fertilizer products, such as Sulphate of Potash&nbsp;Magnesium<br \/>\n(SOP-M), muriate of potash (MOP) and gypsum, along with rock salt.<\/p>\n<p>There is also potential for kieserite and mag chloride<br \/>\nto be commercialized with minimal further processing required.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Asutralian miner is still targeting 2019 to start Colluli potash project execution.<\/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":[1016,2849,369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1146683"}],"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=1146683"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1146683\/revisions"}],"predecessor-version":[{"id":1146753,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1146683\/revisions\/1146753"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1146683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1146683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1146683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}