BY DANAKALI LTD.
Danakali (ASX:DNK) has commenced evaluating all the received bids for power generation at the proposed world class Colluli potash project located in Eritrea.
The bidding process followed an expressions of interest phase which was completed in January.
Colluli is the most advanced greenfield sulphate of potash (SOP) development in the world and is making good progress towards construction.
Evaluation of the bids from the shortlisted parties is expected to be completed by late April, after which the preferred service provider will be selected and commercial terms finalised.
The definitive feasibility study for the Colluli project contemplated power generation utilising a build own operate transfer (BOOT) model, which formed the basis of the formal tendering process.
Paul Donaldson, managing director, commented: “We are pleased to be advancing our contracting process and we look forward to the evaluation of the power generation bids, as well as the selection and appointment of our preferred power generation service provider.
“We are also very happy with the high level of interest we have received to date, which is a clear endorsement of both the project and the jurisdiction.”
Danakali shares have rallied 40% in 2017, currently priced at $0.685.