“Meeting the 2022 production target date depends on Danakali closing out funding and starting construction early in 2021. However, given that we are coming to the end of 2020, the chances of us bringing Colluli into production in 2022 are diminishing.” – Mr. Seamus Cornelius, Chairman
The chances of Danakali building up to full potash production from its Colluli project in Eritrea on schedule were “diminishing”, said the firm’s chairman, Seamus Cornelius.
Danakali share price drops 7.5 percent today after the company says no tranche 2 AFC funding ($28.5 million) before the deadline.
AFC is in discussion with Danakali with a view to finding a funding structure suitable to both parties that will ensure the commencement of construction of the project as soon as possible.
Shares in Australia’s Danakali (ASX, LON:DNK) fell 7.5% to 31 Australian cents on Monday after the miner, which is trying to bring a potash project in Eritrea closer to construction, said its second loan tranche from the Africa Finance Corporation (AFC) was set to fall through. Continue reading Danakali Shares Drop After Second AFC Loan Set to Fall Through→
Danakali has long seen Asia, particularly India, as a prime market. But its most recent presentation indicates that Africa is now also at the forefront of its business thoughts.
Emerging sulphate of potash (SOP) producer Danakali (ASX: DNK) has passed another key step in Eritrea and now heads for production, not only with Asian markets in mind, but plans to realise huge potential in food-hungry Sub-Saharan Africa. Continue reading Danakali Outlines Huge Potash Potential on its Africa Doorstep→
As COVID-19 restrictions are relaxed in Eritrea and it now has access to Colluli, the company can prepare for construction.
Danakali aims to close the required financing in the remainder of 2020 to bring the Colluli Sulphate of Potash project into production. Colluli remains on track for production in 2022.
The Colluli potash project has been called a “game-changer” for Eritrea’s economy, as it is expected to become one of the world’s most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.
Potash is an important fertilizer. The Australian company Danakali is developing the Colluli potash project in Eritrea and expects to bring it into production in 2022.
With a growing world population, demand for food will increase, while the availability of arable land is expected to shrink. Potash, an important fertilizer, could be a game-changer for Eritrea and other African countries. Continue reading Potash – A Game Changer For Eritrea’s Economy→
The accommodation camp is designed to accommodate 600 during the production phase with the flexibility for 1,115 during the construction phase.
RA International will supply, deliver, and install a mine accommodation camp, as well as a plant administration and service facilities for the Colluli mine site. (Photo: RA International)
Danakali has been given the final green light from the Eritrean Ministry of Energy and Mines to develop its world-class Colluli potash project
In accordance with the mining agreement, the Colluli Mining Share Company (CMSC) has 36 months from the submission of the approved notice (notice of commencement of mine development) to spend US$200 million within the mining license area.