Danakali, an Australian-headquartered potash company, says its Eritrea-based Colluli potash project’s engineering, procurement and construction management (EPCM) Phase 2 is nearing completion. The front-end engineering design (FEED) and schedule of the Colluli project is now in its final stage, on budget and scheduled for completion by next month. The Colluli project is 100% owned by the Colluli Mining Share Company, which is a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation. The three key objectives set for the EPCM Phase 2 include an update of the FEED capital estimate, the revision of the FEED project schedule and identification of key test work required to ensure full preparedness for EPCM Phase 3. Completion of the identified test work items provides key data necessary to finalise process plant design development and will allow advancement into EPCM Phase 3 with clear direction. Danakali also notes that several plant enhancement opportunities to improve project design will be presented at the end of EPCM Phase 2.
Uralkali Trading, a wholly-owned subsidiary of Uralkali, has concluded a contract with Indian Potash (IPL), the major Indian importer of fertilizers, for potash deliveries until the end of this year. The contract price has been set at US$230/t of potash fertilizers on the terms of delivery to the buyer’s port (CFR). Uralkali has said the agreement “reflects the current market situation, in contrast to the commercial terms of the Chinese contract, which were considered suboptimal by most companies in the industry.” The contract price for the two companies’ previous agreement, which ran from October 2019 to 31 March 2020, was undisclosed but was set at the then market level, according to Uralkali. “Uralkali believes that overall the price parameters of this agreement reflect the current market environment and consider the interests of both consumers and producers equally in the economic crisis, while supporting the company’s position in one of its key markets,” Alexander Terletsky, Uralkali Trading CEO, commented.
Salt Lake Potash has announced positive results from the pumping of its paleochannel brine extraction bore at Lake Way, which is located in the Goldfields region of Western Australia, 15km south of Wiluna. Pumping of the initial brine extraction bore drilled into the Lake Way paleochannel delivered flow rates of 18 litres per second, with a consistent potassium grade of 7100 mg per litre (15.9kg/m3 SOP), sustained over a 17 day period, whereby these results are significantly above average flow rates used in the bankable feasibility study (BFS). In the months ahead, the company will drill and test pump further brine extraction bores along the eastern side of Lake Way. During May, bores have been completed at Pads 8 and 21, with test pumping expected to be completed in the near term. In each case the primary basal sand aquifer was encountered in line with the company’s geological model prediction.
