27.07.2019 updated
Australia’s Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world’s most significant and lowest cost sources of sulphate of potash (SOP), a premium grade fertilizer
Once those credit approvals are confirmed, something the Perth-based company estimates will happen “any day” now, Danakali will kick off development of the 1.1 billion-tonne potash project.
Construction of the mine, 100% owned by Colluli Mining Share Company (CMSC), a 50:50 joint venture between the Aussie miner and the Eritrean National Mining Corporation (ENAMCO), is expected to take two and a half years.
The 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,” Wage told MINING.COM.
According to chief executive Niels Wage, Eritrea is set to start reaping the benefits of the project right away.
A United Nations report published in January suggested that Colluli could significantly boost the economy of Eritrea, a country that, until last year, was on the UN’s sanctions list.
The report estimated that Colluli would contribute 3% of the country’s GDP by 2021 and 50% of the nation’s exports by 2030, while providing 10,000 direct and indirect local jobs.
Colluli has potential to produce other fertilizer products, such as Sulphate of Potash Magnesium (SOP-M), muriate of potash (MOP) and gypsum, along with rock salt.
There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.
BY CECILIA JAMASMIE | MINING[DOT]COM
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