Mining Contract Expressions of Interest Complete for World Class Colluli Project

Colluli is the largest and shallowest known evaporite deposit in the world with a solid form ore reserve estimate of over 1.1bn tonnes.

Danakali prepares to award mining contract
Danakali prepares to award mining contract. It has completed the expressions of interest process for mining contractors for the Colluli Project.

BY DANAKALI LTD

Danakali Limited (ASX:DNK) is pleased to advise that is has completed the expressions of interest (“EOI”) process for mining contractors for the Colluli Potash Project. The EOI phase is a precursor to the mining contract tendering process which will commence shortly.

Expressions of interest have been received from mining contracting firms based in Australia, South Africa, and the broader African continent. All parties have extensive experience in the African mining industry and specialise in open cut mining methods.

The shortlisted parties will formally bid in a competitive tendering process using further refined and detailed pit designs and material movement schedules derived in the definitive feasibility study.



An appointment of a suitable industry service provider to further optimise and refine the mining schedule, in line with the front end engineering design (FEED) work which is currently underway, will be made in the very near future.

The mining method, which includes the use of conventional haul trucks, excavators and surface miners was established during the Colluli feasibility studies after a series of economic trade-off evaluations.

Surface miners are highly suitable for salt mining and provide a high degree of selectivity. This is highly advantageous for managing the suite of sodium, magnesium and potassium salts within the Colluli resource.

The use of surface miners negates the need for primary crushing within the processing plant and completely eliminates the need for explosives in the mining operations.

The open cut mining method also provides superior resource to reserve conversion in contrast with the alternate potash mining methods of underground and solution mining. The mining operation will generate a low waste to ore ratio of approximately two to one.

Colluli is the most advanced stage greenfield primary sulphate of potash (SOP) project in the world.

Pre-construction activities including the front end engineering design process and advancement of major operational contracts are progressing well whilst funding and off-take discussions continue. Power generation bids have been received and are currently under evaluation.

Managing Director, Paul Donaldson said

“This is another significant step in our pre-construction activities and we now look forward to the final refinement and optimisation of the mining schedules to support the mining contract bidding process. This is a critical operational contract for the project, and we are very pleased to have a high-quality group of candidates to progress to the competitive bidding phase.”

Danakali Limited, in conjunction with the Eritrean National Mining Corporation (“ENAMCO”), is developing the world class Colluli Potash Project located in the Danakil region of Eritrea, East Africa.

Colluli is the largest and shallowest known evaporite deposit in the world with a solid form ore reserve estimate of over 1.1bn tonnes.

Permitting for the project was completed in February 2017, providing the Colluli Mining Share Company (“CMSC”) exclusive rights to apply for mining licenses within the Colluli tenements. Mining licenses have also been granted.

Colluli is the most fundable and economically attractive advanced stage SOP greenfield development in the world. The project demonstrates outstanding economics including industry leading capital intensity, bottom quartile operating costs, close proximity to coast and key markets and unrivalled product diversification potential.

Globally recognised, and highly reputable engineering and construction firm, Fluor was appointed as the lead for the FEED process for the project. The FEED team is also supported by Global Potash Solutions, Knight Piésold and Elemental Engineering.

20 thoughts on “Mining Contract Expressions of Interest Complete for World Class Colluli Project

  1. Here it is Eritrea is to help feed the hungry world for the next 200 years. Yesterday it was gold, the was copper, it was silver, and it was zinc, And now it is POTASH to help feed the hungry world for the next 200 years.

    But and but do not forget the Eritrean blessing is her hard working, creative, peaceful, optimistic people. There is where the Eritrean hidden strength.

    Stay on course DEki Halal Meriet, the Promised is just around the corner

  2. Articles about Eritrea get 3 or 4 comments. Articles about Ethiopia get dozens of comments. Why is that?
    1) Looking at Eritrean issues in critical view is almost taboo. People are used to go by whatever the government tells them. If they don’t agree, they keep it to themselves. To publicly state different view is highly discouraged.
    2) On Ethiopian issues, there are two factors: a) things are presented in exagerrated and sensational way by the editor. b) commenters feel free to scrutinize, criticize and provide ‘solutions’. The freedom they lack on Eritrean issues is compensated by the unlimited freedom they get to discuss Ethiopian issues.

    1. Sunridge is no more. It has been acquired by a Chinese State-owned company SRBM two years ago. No body knows (at least until the next Asmara Mining Conference) much about how far SRBM developed the Asmara Project. Actually, that is how the Chinese are doing business. You have to go physically and see the progress of the project, otherwise, since they don’t publicize their business online, there is no way for ordinary people like you and me of knowing anything about the status of the Chinese owned projects.

      A case in point is Zara Mining. Before we know anything about it, it popped out out of the bloom and start producing Gold.

  3. Nevsun Resources Extends Harena Drilling Site in Eritrea

    Nevsun Resources Ltd announced Tuesday new assay results from on-going drilling at Harena in Eritrea. These results include in-fill drilling of large gaps in the resource model, as well as new results from the testing of Harena at depth.

    Nevsun also reported that the 6,386 line kilometre VTEM (Versatile Time Domain Electromagnetic) airborne survey has been completed over an 825 square kilometre licensed area at the Bisha mine in Eritrea.

    Among highlights Tuesday, it intersected 18.4 metres of 1.65% Cu, 4.03% Zn, 0.82g/t Au, 55g/t Ag extending the deposit by 150 metres; borehole electromagnetic surveys suggest further down plunge extensions likely.

    CEO Cliff Davis said, “the new drilling demonstrates that the already sizeable Harena resource extends 150 metres beyond its currently modelled limits, further enhancing the potential for underground mining.”

    https://hiramherald.com/nevsun-resources-extends-harena-drilling-site-in-eritrea/

  4. Our economy is not rely on exploitation of natural resources only. We have more than one dozen strong pillars i.e different sectors which can support our economy.relaing on asingle pillar may not guarantee for future risks or uncertainity

    1. I think one of them is to export Donkey Meat to China, Vietnam…etc. and still the export revenue of Ethiopia has never been more than 4 billion a year. Pathetic!

    2. ~
      “We have more than one dozen strong pillars i.e ” like የቆሼ ተራራ በኣይድስ ኣበባ፣ ያህያ ልኳንዳ ከወደ ቢሸፍቱ ፣ የመቀሌው ወደብ Cape Canaveral፣ የራብና የድርቅ ችንንፍር በየቀየው፣ ሰሚ ሲያጣ የገነፈልው የግፉአን እሩምታ ወዘተ ወዘተ. ????

      የህ(?)ወሃ(?)ትትትትትት ጋሻ ጃግሬውች ከነ NGO ኣጕራሾቻቸው – – – ኰሮጆዎቻቸው ተወጥረው እስኪቦጠራረቁ $$$$ ሰጓጕደው የሚጠቀጥቁበትን፣ የወሬና የወረቀት “ኢንዱስትሪ ፓርኩን” ቅብጥሮሽ፣ መልሰህ እንዳትደግምልኝና ከማስካካት አልፎ፣ በሳቅ አንፈርፍረህ ድብን አርገህ እንዳትጨርሰኝ እየሰጋሁ ነው። ???? ???? ????
      ~

    3. Does Foreign Aid/U.S AID count as a pillar ?
      Does selling servants/sex slaves to Al Amoudi and Arabs count as a pillar ?
      Does entrenched corruption at all levels count as a pillar ?
      Does war mongering and source of regional instability count as a pillar ?

      as you say “which can support our economy.relaing on asingle pillar may not guarantee for future risks or uncertainty”

      https://uploads.disquscdn.com/images/db830fa4e043bef9bc3b8d55492731777cf93ca9f858805530ccc6e2fb3c0da0.jpg

        1. based on all your previous posts, i think that it is because you have a general issue overall when it comes to “thinking”

    4. ኣሌክ - Alec you · Edit

      U Agame retards, always compering ur s**t with ours. Ur inferiority complex is to blame.Smh

      Even with all the Aid-handouts from ur saviors, u can’t even feed yourselves. Ur nothing without ur white Gods in the West. Pathetic!!

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