Danakali Limited (ASX: DNK, LSE: DNK) is focused on the development of the Colluli Potash Project (Colluli or the Project). The Project is located in the Danakil Depression region of Eritrea, East Africa and is 100% owned by the Colluli Mining Share Company (CMSC). CMSC is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Corporation (ENAMCO).
Over 1 billion tonnes of high-grade potassium bearing salts suitable for the production of potash have been identified. The potassium bearing salts of Colluli have the unique capability of producing a diverse range of potash types including sulphate of potash (SOP or potassium sulphate), muriate of potash (MOP or potassium chloride), and sulphate of potash magnesia (SOP-M or potassium magnesium sulphate).
SOP is a highly valued, chloride free, premium potash fertiliser containing both potassium and sulphur, which are essential crop nutrients. Developed in a modular way, Colluli will produce 472ktpa of premium SOP product in the first phase with a 200 year mine life for a two module development (a further 472ktpa).
Following completion of the front-end engineering design (FEED) study, Danakali has successfully agreed a binding take or pay offtake contract for the sale of SOP and secured the majority of the project funding requirement through US$200M of CMSC Senior Debt and US$50M of Danakali Equity.
FEED confirmed the economic robustness of the Colluli Project resulting in industry leading capital intensity and first quartile operating costs. These factors combined with a premium product, unrivalled proximity to coast and exceptionally long mine life position Colluli as a standout opportunity.
For more information regarding the Colluli Project: Link
For more information regarding the FEED Study: Link
For more information regarding the Offtake: Link
For more information regarding the CMSC Ownership Structure: Link