ASX-listed Danakali has presented favourable results from six months of detailed testwork conducted with industry experts Saskatchewan Research Council, Global Potash Solutions, DRA Global and CasCan.
The testwork involves the Colluli project?s process design using filtered seawater. Danakali also worked closely with its offtake partner EuroChem to ensure that high-quality sulphate of potash grades were produced in line with international standards. Testwork has proven that the Colluli project, in Eritrea, can produce ore at a consistent high grade of 51% potassium oxide from 472 000 t/y of production. The project will be a world-first using filtered seawater, column flotation and co-processing of carnalite and sylvinite ore, which significantly reduces project development, and operational, finance and market risk. Danakali aims to start production next year.
Eritrea has been relatively successful in attracting mining companies even under the severe constraints caused by the old geopolitical circumstances. The government is pragmatic in its approach to the development of the Eritrean mining industry. Its Mineral Proclamation is based on the Western Australian mining code, and it has not changed the mining or fiscal legislation since it was enacted. A prosperous and growing mining industry will provide Eritrea with much-needed income as well as employment in the operations and service sector. Eritrea is a fascinating and wonderful country and it is an honour to be trusted with the development of this significant asset. In the development of Colluli we take responsibility to ensure that all of our values are aligned across our activities and embedded in all of our practices. We are working with key stakeholders to optimise the benefits and social impacts of Colluli.
Our Partners Partnerships never go out of style. At Danakali, we believe that partnerships built on clarity, proactive management, accountability, and agility are integral for achieving success and creating outsize value and productivity. Colluli remains an outstanding asset, and we have solid and productive relationships with ENAMCO, AFC, Afreximbank and EuroChem. These key partners are all working with us to bring Colluli into production as quickly and safely as possible.
In this episode, host Peter Strachan takes a look at the Sulphate of Potash (SOP) market
Populating the expert panel for this discussion is Seamus Cornelius, Executive Chairman of Danakali (ASX:DNK) and Mark Savich, CEO and Executive Director of Agrimin (ASX:AMN).
The pair discuss a range of topics, including potassium?s role in fertiliser product mix, the structure of potash market, SOP supply chain dynamics, the premium pricing of SOP, the potential impact of BHP?s Canadian MOP project and more.
Tune in above to hear the panel discuss these topics.
Unlike the current major potash producing basins of the world, the Danakil region contains a variety of potassium bearing salts, providing the opportunity to generate a range of potash fertilisers. The Danakil basin contains the only potash resource in the world that allows such product diversity. The Colluli resource comprises three potassium bearing salts in solid form: sylvinite, carnallitite and kainitite. These salts are suitable for high yield, low energy production of SOP, which is a high-quality potash fertiliser carrying a price premium over the more common MOP. Colluli boasts the shallowest known evaporite mineralisation globally and has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere. Listen to our Executive Chairman, Seamus Cornelius discussing unique Colluli geology.
Interview with Seamus Cornelius, Exec. Chairman of Danakali Ltd. (ASX:DNK)
Danakali is a resource company focused on Colluli SOP Project in Eritrea, East Africa. Our strategy targets development of a world class potash project that will become pivotal for Global and African agriculture. Colluli is expected to provide an outstanding economic, social and community dividend through positive impact on infrastructure, job creation and sustainability in Eritrea.
: DANAKALI - Proposed Cancellation of London Listing
11/08/2021 8:06 am Proposed Cancellation of London Listing
? LSE delisting increases administrative efficiencies in support of full funding solution ? Over 97% of DNK?s current UK institutional investors invest directly into ASX via nominees ? Key Stakeholders and Major Shareholders fully supportive of the LSE delisting event
ASX Release: 1 September 2021 Change to Board of Directors
? Non-Executive Director Robert Gordon Connochie Retires Danakali Limited (ASX: DNK, LSE: DNK, Danakali or the Company) announces Mr Robert Gordon Connochie, has elected to retire from the Board as Independent Non-Executive Director effective midnight Perth time 31 August 2021.
dazu eine Information von Seamus Cornelius (Chairman DNK) in einem Interview am 14.09.21: "We are currently listed on the LSE, in addition to being listed on the ASX, but we are delisting from the LSE soon. As it turns out, we've realized that it's just not a good position for us to be listed on both exchanges. We don't get any extra benefit from being listed on the LSE and we do get a lot of additional cost and compliance, which we don't need. Part of our approach, as we move into development and production, is to be as lean a production operation as we can be. So, there's not going to be any wasted spending, on things that don't help us achieve our key objectives. That's why we've decided to delist from the LSE, but keep our listing on the ASX, and also on several German exchanges." http://www.metalsnews.com/Metals+News/MetalsNews/...ed+SOP+Projec.htm
Danakali receives updated Sulphate of Potash Price Forecast Analysis from CRU
Highlights ? Muriate of Potash (MOP) prices surged higher across multiple global markets from January 2021 ? Medium term Sulphate of Potash (SOP) price is forecast to increase and long-term outlook predicts SOP prices increasing further ? Colluli? s FEED sensitivity analysis indicates that for every 10% increase in SOP price Colluli Project NPV increases by US$250M ? Colluli is fully permitted, all studies complete, process flow design finalised and de-risked
Listen to our Executive Chairman, Seamus Cornelius, as he explains the core of SOP pricing dynamics. SOP comes at a higher price than MOP as most of the world?s SOP is produced using the Mannheim process, which uses MOP and sulphuric acid as the inputs. There is a natural constraint to expand supply through the existing secondary production processes economically. A new project that intends to produce SOP by primary methods takes years and hundreds of millions to establish. The supply-side constrain indicates there is a market need to increase SOP production to meet supply shortfalls. The SOP prices are remarkably resilient because most SOP is produced by the Mannheim process, which has 87% of the cost of their inputs tied to MOP and sulphuric acid with the balance of their costs tied to power other operational costs. As a result, the SOP price premium over MOP has remained at above US$220/t on average for the past ten years.
Seamus Cornelius, Executive Chairman of Danakali Achim Strauss, Chief Executive Officer of Kanga Potash, had a panel discussion, moderated by Mark Heyhoe, Advisor of Fox-Davies Capital, on the topic of 'Can juniors succeed in the potash space?' at Mines and Money Online Connect @ IMARC in October 2021. Listen to get some quality insights about the potash sector
Update: Magnesium Chloride Colluli will produce significant tonnes of high purity Magnesium Chloride (MgCl2) as a by-product of its Sulphate of Potash production process Highlights ? Colluli will produce potentially economic MgCl2 from two sources at its Sulphate of Potash (SOP) production operation. The value of MgCl2 and any derivative products including Magnesium Oxide (MgO) or Magnesium (Mg) does not form part of our current financial, economic or FEED studies. ? The two sources, being primary Bischofite brine from our process plant and secondary Bischofite ore from our mine have a potential combined production capacity of 55.8 Mt of MgCl2 in the first 60 years from Modules 1 and 2 alone. ? MgCl2 is a primary feedstock in the production of MgO and Mg.
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