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Danakali Initiates Bidding for Eritrea’s Colluli Potash Project

Danakali has started the bidding process for power generation for Eritrea’s Colluli potash project and finalized the initial expressions of interest (EOI) phase. The process undermines the continuing momentum for the company that recently appointed a global engineering and construction firm Fluor to be in charge of the front end engineering design. Companies from the Middle East, Australia, Africa, the United States and the United Kingdom have all expressed their interests in the project.
Paul Donaldson, the company’s Managing Director, commented that “the very high level of interest for providing power generation to the Colluli project is pleasing and it is a clear endorsement of both the project and the jurisdiction” and added that “we are rapidly advancing our world class project and expect to commence tendering for the mining contract in the near future.”
The Colluli Potash Project is located in the Danakil region of Eritrea and is 100 percent owned by CMSC, or the Colluli Mining Share Company. CMSC is a 50:50 Joint Venture between Danakali Limited and the Eritrean National Mining Company (ENAMCO). The definitive feasibility study on Colluli was completed in November 2015 and the project is currently awaiting mining license approvals. Colluli is expected to become one of the world’s most significant and lowest cost potassium sulphate production centers.
Since drilling started at Colluli in 2010, more than 1 billion tones of potassium bearing salts suitable for the production of potash have been identified. Recent milestones at Colluli include the bidding process for the power generation, the appointment of Fluor and approval of the social and environmental impact assessment (SEIA). The Colluli deposit is the world’s shallowest known deposit is geographically favorable relative to the key potash markets of the future. The site is one of the most advanced greenfield sulphate of potash (SOP) developments in the world that also demonstrates outstanding economics.

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