Danakali Limited (ASX:DNK) announced that it has hosted a visit to the Colluli potash project site in Eritrea for Engineering companies shortlisted to bid on front end engineering design (FEED) and Engineering, Procurement and Construction (EPC) work for the project.
The Colluli Potash Project is one of the most advanced greenfield sulphate of potash (SOP) projects globally with exceptionally long expected mine life, unrivalled product diversification potential and significant upside.
In addition to visiting the future Colluli mine site, the companies toured Asmara, met with local contracting companies, inspected in country facilities and visited the Port of Massawa.
Danakali has a 50% equity interest in Colluli through a joint venture with the Eritrean National Mining Company.
In September, Danakali announced that three engineering companies had been shortlisted for the bidding process, and that a site visit would be completed in early October. The shortlist includes companies with Africa, Eritrea and Potash experience.
Paul Donaldson, managing director, commented:
“Colluli is one of, if not the most advanced stage SOP project in the world and carries superior economics relative to all advanced stage SOP developments.
“The shallow mineralization, highly favourable suite of potassium salts, ability to extract feed salts in solid form and proximity to established export facilities give the Colluli project significant, resource specific advantages. Significant positive progress has been made over the past year, and we continue to make positive progress towards construction.
“There is no other advanced stage SOP project in the world with the fundability, growth potential, resource versatility, resource and ore reserve size of Colluli.”
Colluli has a unique resource composition relative to other potash basins throughout the world, enabling it to produce a broad suite of fertiliser products.
This adds to what is a compelling investment case and further substantiates Colluli as a positively unique, world class project with multi agri-commodity potential.
Funding discussions are underway and the company has signed memorandums of understanding for 800,000 tonnes of SOP per annum and 200,000 tonnes of sulphate of potash magnesia (SOP-M) per annum.