Tag Archives: Colluli Potash DFS

Colluli Potash Project to Cost US $289m

Colluli Potash
Very robust potash project. Danakali has released a very strong DFS for its large potash (SOP) project in Eritrea.

By Fraser Beattie,

A definitive feasibility study on potash explorer Danakali’s Colluli project in Eritrea has found a 30 per cent reduction in development costs to $US 298 million.

Danakali, which owns the Colluli project in a 50:50 joint venture with the Eritrean National Mining Corporation, said phase one development costs had been reduced by 30 per cent, with the project expected to produce about 425,000 tonnes per annum of sulphate of potash (SOP) when commissioned at the end of 2018.

Phase two of the project is expected to begin after six years of production and boost the project’s output to 850,000t/year of SOP at an additional cost of $US 175 million.

Colluli, which has an expected 200-year mine life, has a net present value of $US860 million based on an SOP price of $US 572 per tonne.  Continue reading Colluli Potash Project to Cost US $289m

Colluli Potash Definitive Feasibility Study (DFS) Complete

Colluli Potash DFS results are now out. It exceeds previous expectations and once again demonstrates Colluli is one of the most attractive potash projects in the world

By Danakali Ltd.,

Danakali Limited (Danakali, ASX: DNK) is pleased to announce the results of the Definitive Feasibility Study (DFS) for the Colluli Potash Project (Colluli, or the Project), located in Eritrea, East Africa. The Project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).

Key outcomes of the DFS include a reduction in Phase I development capital by over 30% to US$298m resulting in a market leading capital intensity of US $702/t sulphate of potash (SOP) and an accelerated Phase-I payback period of 3.5 years.

The Colluli operation will apply open pit mining methods to take full advantage of its shallow mineralisation, which commences at just 16m. This depth of mineralisation makes Colluli the shallowest known evaporite deposit globally.  Continue reading Colluli Potash Definitive Feasibility Study (DFS) Complete