- Write by:
-
Monday, October 3, 2022 - 23:26:29
-
673 Visit
-
Print
Mining News Pro - Australia’s Danakali is selling its 50% stake in the Colluli potash project in Eritrea, Africa, almost 13 years after partnering with the Eritrean National Mining Corporation (ENAMCO) to build the mine.
Subject to conditions, the deal with Chinese company Sichuan Road and Bridge Group is expected to be finalized between March and May next year, leaving Danakali with $121 million cash, of which 90% will be distributed back to shareholders.
The miner said it would use the remaining cash — about $12 million —to identify new projects “and potential new alternative growth opportunities.”
The Colluli potash project is considered one of the world’s most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.
The project has the world’s largest JORC compliant reserve at 1.1 billion tonnes. It also contains other fertilizer products, such as muriate of potash (MOP) and gypsum, along with rock salt.
There is also potential for kieserite and mag chloride to be commercialized with minimal further processing required.
A United Nations report published in 2019 suggested that Colluli could significantly boost the economy of Eritrea.
The project is the only known source of potash that allows extraction of the fertilizer in solid form. It also has access to solar, wind and geothermal energy systems – the East African rift.
The operating environment weighed heavily on Danakali’s decision, as Eritrea is ruled by one of the world’s most oppressive regimes and was until 2018 on the UN’s sanctions list.
Short Link:
https://www.miningnews.ir/En/News/622239
Mining News Pro - In the first three months of this year, Hormozgan Steel Company managed to produce about 945 thousand ...
Mining News Pro - CEO of Esfahan Steel Company, presented a report on the company's recent activities and achievements ...
Mining News Pro - ESCO's Deputy of Commerce mentioned that the construction industry exhibition presents the development ...
Sibanye Stillwater Ltd. plans further restructuring at its mines in Montana that could cut output of palladium and ...
China accounts for more than half of the world’s pipeline of new coal mines, risking a significant increase in methane ...
Miner Anglo American on Tuesday launched an accelerated bookbuild offering of about 13 million shares of Anglo American ...
A Chinese state-owned company will finalize an agreement to take over the concession of a railway that links Zambia’s ...
Anax Metals and Artemis Resources have signed a memorandum of understanding (MoU), marking the formation of a copper ...
Pilbara Minerals has ordered several surface drill rigs from Epiroc for its Pilgangoora lithium operation in Western ...
No comments have been posted yet ...