{"id":1185679,"date":"2020-05-21T05:55:00","date_gmt":"2020-05-21T10:55:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1024562"},"modified":"2020-05-21T05:55:00","modified_gmt":"2020-05-21T10:55:00","slug":"danakali-closer-to-getting-eritrea-potash-project-off-the-ground","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1185679","title":{"rendered":"Danakali closer to getting Eritrea potash project off the ground"},"content":{"rendered":"<p>Australia\u2019s Danakali (ASX, LON:DNK) <a href=\"https:\/\/www.londonstockexchange.com\/exchange\/news\/market-news\/market-news-detail\/DNK\/14548319.html\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">said on Thursday<\/a> it was is in the final stages of completing the second phase of development\u00a0of its world-class Colluli potash project in Eritrea, Africa.<\/p>\n<div class='ad-slot' id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {    googletag.display('div-gpt-ad-1561499308230-0');    googletag.pubads().addEventListener('slotRenderEnded', function (event) {        if (event.isEmpty) {            var id = event.slot.getSlotElementId();            var x = document.getElementById(id);            if(x == null) return;            if (x.parentElement.classList.contains('ad-slot')) {                x.parentElement.style.display = 'none';            }\t\t\t\t        }    });});<\/script><\/div>\n<p>The front-end engineering design (FEED), expected to be<br \/>\nfinished in June, will take the company a step closer to the construction phase<br \/>\nand then onto production in 2022, Danakali said.<\/p>\n<p>The three key objectives set for the second phase of development included updating capital estimate, project schedule and identifying key test work required to move into Phase 3.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>The Colluli project is located in the Danakil Depression region of Eritrea, East Africa, about 75 km from the Red Sea coast.\u00a0<\/p>\n<\/blockquote>\n<\/figure>\n<p>The Perth-based&nbsp;miner noted that despite of covid-19<br \/>\nrestrictions, engineering, procurement and construction management (EPCM)<br \/>\nactivities have continued as scheduled. It also said that all vendor and<br \/>\ncontractor packages have now been received.<\/p>\n<p>Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), <a href=\"https:\/\/www.mining.com\/danakalis-potash-project-game-changer-eritrea-un\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">has been called \u201ca game changer\u201d<\/a> for Eritrea\u2019s economy, as 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<p>\u201cThe government will benefit from the longer-term<br \/>\ndevelopment of the project, and the expected significant boost to royalties,<br \/>\ntaxation and exports, and from jobs and skills and economic development of the<br \/>\nregion,\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 last year<\/a>.<\/p>\n<p>The development of the Colluli potash projects coincides<br \/>\nwith the move towards diplomatic relations between the once feuding countries<br \/>\nof Eritrea and Ethiopia, which officially declared peace in July 2018.<\/p>\n<h2><strong>Welcome boost<\/strong><\/h2>\n<p>A United Nations report\u00a0<a href=\"https:\/\/mining.com\/danakalis-potash-project-game-changer-eritrea-un\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">published last year<\/a>\u00a0suggested that Colluli could significantly boost the economy of Eritrea, a country that, until 2018, was 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>The report also identified how the mine could help Eritrea<br \/>\nadvance its sustainable development agenda, which are 13 priority Sustainable<br \/>\nDevelopment Goals (SDGs). These include: No poverty, zero hunger, quality<br \/>\neducation, gender equality, clean water and sanitation, sustainable economic<br \/>\ngrowth and decent work, industry, innovation and infrastructure, reduced<br \/>\ninequalities, climate action, peace, justice and strong institutions and<br \/>\npartnerships 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 Sulphate of Potash. Annual output<br \/>\ncould rise to almost 944,000 tonnes if Danakali decides to go ahead with a<br \/>\nsecond phase of development, as the project has a possible 200-year plus<br \/>\nmine-life.<\/p>\n<p>The asset has the potential to produce other fertilizer<br \/>\nproducts, such as Sulphate of Potash&nbsp;Magnesium (SOP-M), muriate of potash<br \/>\n(MOP) and gypsum, along with rock salt. There is also potential for kieserite<br \/>\nand mag chloride to be commercialized with minimal further processing required.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Second-phase of development for the Colluli potash project will be completed in June.<\/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":[369,4],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1185679"}],"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=1185679"}],"version-history":[{"count":5,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1185679\/revisions"}],"predecessor-version":[{"id":1185765,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1185679\/revisions\/1185765"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1185679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1185679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1185679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}