Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Danakali progresses towards goal of becoming leading sulphate of potash producer and exporter

% of readers think this story is Fact. Add your two cents.


Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) is confident that its unique Colluli Sulphate of Potash (SOP) Project development in Eritrea, Africa, is set to become a global game changer.

The project hosts the world’s largest and only solid salt, near-surface SOP resource (mineralisation commences at just 16 metres) with unrivalled reserves of 1.1 billion tonnes of high-grade ore able to deliver around 200 years of production.

Danakali is aiming for a 2022 production target date, pending the closing out of funding and commencement of construction early this year.

Project development

Process test-work continues to be undertaken before EPCM Phase 3 (detailed design) commences, the results of which will increase the accuracy of equipment selection allowing future schedule risk mitigation.

This test-work is progressing as planned for completion late in the current quarter.

Robust economics

Notably, Colluli has strong economics with the first two modules of SOP (each 472,000) delivering robust returns for the company at a net present value of US$439 million and an internal rate of return of 31%.

The project also has already secured US$221 million of financing through senior debt and equity with African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC).

As of December 31, consolidated cash on hand was A$9.74 million, which the company estimated as sufficient for more than five quarters.

Colluli Front End Engineering Design (FEED) economic estimates and outcomes.

Proximal to growing SOP markets

Colluli is strategically positioned near the established and developing SOP markets of Europe, the Middle East, South East Asia and Africa and is the closest SOP project to port infrastructure (Massawa) in the world.

The proposed future port at Anfile Bay has the potential to create an unrivalled global logistics advantage just 87 kilometres from the project.

Danakali’s 10-year take or pay offtake agreement with EuroChem Trading GmbH for up to 100% (minimum 87%) of Colluli Module I SOP production is expected to leverage these markets, especially Africa.

In addition, the project’s location unlocks its potential to expand to become a multicommodity fertiliser producer with large volumes of SOP waste products able to be commercialised once Anfile Bay is developed, which in turn offers the opportunity to diversify revenue.

Zero carbon production

A key difference for the project to its peers is the company’s plans to make Colluli the world’s first carbon neutral producer of SOP.

The project has unrivalled access to one of the world’s greatest geothermal energy systems, the Great African Rift.

In addition, natural climate conditions in the region are also ideal for solar and wind energy with the Danakali desert nearby and prevailing coastal winds a potential resource.

As part of its Phase 2 expansion, the company is working on plans to shift to these renewable energy sources.

The project has a high degree of expandability and multi-commodity potential.

Humanitarian Impact

Danakali has been operating in Eritrea since 2009 and has found the country to be a safe, stable and development focused jurisdiction,

The United Nations Development Program (UNDP) has indicated Colluli has a significant long-term positive humanitarian impact in the region, with key benefits including job creation, economic development, and an increase in food security.

The company’s ESG framework is contributing to 13 of 17 Sustainable Development Goals while the project has been highlighted by UNDP as a blueprint for mining in developing countries.

Danakali has a market cap of approximately A$129.1 million while shares have traded up to A$0.38 today.

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/941024/danakali-progresses-towards-goal-of-becoming-leading-sulphate-of-potash-producer-and-exporter-941024.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.