Eritrean Gov’t Approves Danakali’s Social and Environmental Plans (SEMPs)

Colluli's finalized social and environmental management plans approved by gov't
Danakali Ltd finalizes Colluli social and environmental plans for its world-class Colluli potash project and the Eritrean Ministry of Land, Water and Environment has accepted it after an extensive impact review process.

BY TESFANEWS

Potash developer Danakali has reached another milestone at its Colluli project, in Eritrea, with the Eritrean Ministry of Land, Water and Environment accepting the finalized social and environmental management plans for the project.

Finalization and acceptance of the SEMPs represent another strong milestone for Colluli Mining Share Company (CMSC) as it prepares for project execution.




Danakali said on Wednesday that the acceptance followed extensive reviews of the management plans in the context of the previously approved social and environmental impact assessment, numerous meetings, and extensive comments provided to and actioned by the Colluli Mining Share Company (CMSC).

Danakali executive chairman Seamus Cornelius said, “We are committed to having a significantly positive impact in Eritrea.

“Colluli stands to provide significant social and economic benefits, creating hundreds of permanent jobs for Eritrean nationals and catering for community interests.

The project is fully permitted following the signing of a mining agreement between CMSC and the Eritrean Ministry of Energy and Mines, and the subsequent award of the requisite mining licences in early 2017.

The project is 100%-owned by CMSC, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).

A 2015 feasibility study estimated that the Stage 1 development of Colluli will require a capital investment of $442-million.

The study examined a two-module development with an expected production of 425 000 t/y of sulphate potash (SoP) for the first five years of operation, increasing to 850 000 t/y for the remainder of the proposed 200-year mine life.

Similar underdeveloped potash projects in neighboring Ethiopia will soon start benefiting from access to the closest Colluli project logistic infrastructure rather than the initially proposed long and expensive Djibouti route.

Colluli’s Impact in Eritrea

Eritrea stands to benefit from the long-term economic, social and community dividends that Colluli will generate:

– Positive impact through infrastructure, job creation, taxes, royalties, and associated economic development;
– Creation of hundreds of permanent jobs for Eritrean nationals;
– Long term training for trades and professionals; and
– Potential for adjacent industry development – including infrastructure, mining services, transport, and hospitality.