{"id":1205196,"date":"2020-09-02T09:03:00","date_gmt":"2020-09-02T14:03:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1034472"},"modified":"2020-09-02T09:03:00","modified_gmt":"2020-09-02T14:03:00","slug":"danakali-flags-improvements-to-eritrea-potash-project","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1205196","title":{"rendered":"Danakali flags improvements to Eritrea potash project"},"content":{"rendered":"<p>Australia\u2019s Danakali (ASX, LON:DNK)&nbsp;<a href=\"https:\/\/www.londonstockexchange.com\/news-article\/DNK\/colluli-project-update-epcm-phase-2-complete\/14672190\"  rel=\"noreferrer noopener\">said on Wednesday<\/a> it has completed an updated process plant and infrastructure study for its Colluli potash project in Eritrea, which has identified optimization opportunities for the proposed mine.<\/p>\n<p>The Perth-based&nbsp;company, which has completed phase two of engineering, procurement and construction management (EPCM)&nbsp;work at Colluli, said main potential improvements are related to the environmental and economic aspects of the project.<\/p>\n<p>Upgrades include a beach well intake for the water intake treatment area, which has a lower environmental impact and was found preferable to a subsea intake pipeline.<\/p>\n<p>A&nbsp;third-party review of the work by DRA Global found the beach well intake minimised risk to subsea and coastal habitats by avoiding onshore pipeline construction and offshore installation.<\/p>\n<p>Another optimization was dry harvesting from back end recovery ponds, resulting in a less complex processing design.<\/p>\n<p>Danakali has also selected RA International as camp provider which will give the project a fit for purpose manufactured camp.<\/p>\n<p>Chief executive officer Niels Wage&nbsp;said the assessment provides \u201cincreased certainty and understanding\u201d of the project and its schedule.<\/p>\n<p>\u201cThe detail review process again validates the robustness of the project and previous technical studies.\u201d<\/p>\n<p>\u201cIt is also pleasing to see that a number of optimisation opportunities in the process are established that will further de-risk the project,\u201d Wage added.<\/p>\n<h2><strong>Game changer<\/strong><\/h2>\n<p>Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022.<\/p>\n<p>In the initial phase of operations, the mine would produce more than 472,000 tonnes a year of sulphate of potash (SOP), a premium grade fertilizer.<\/p>\n<p>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<p>The company will now begin phase three of construction at the project, which&nbsp;<a href=\"https:\/\/www.mining.com\/danakalis-potash-project-game-changer-eritrea-un\/\"  rel=\"noreferrer noopener\">has been called \u201ca game-changer\u201d<\/a>&nbsp;for the East African nation\u2019s economy.<\/p>\n<p>Danakali\u2019s further de-risk of Colluli coincides with the move towards diplomatic relations between the once feuding countries of Eritrea and Ethiopia, which officially declared peace in July 2018.<\/p>\n<p>Until that year, Eritrea was on the United Nations\u2019 sanctions list.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The miner has identified environmental and economic optimization opportunities at its Colluli potash project in Eritrea.<\/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 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