Australia’s Danakali (ASX, LON:DNK) is closer than ever to beginning the development of its world-class Colluli potash project in Eritrea, which is expected to become one of the world’s most significant and lowest cost sources of sulphate of potash (SOP), a premium grade fertilizer.
A key step toward that goal was taken late last year, when Danakali signed a $200 million funding mandate with a syndicate of African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC)
Once those credit approvals are confirmed, something the Perth-based company estimates will happen “any day” now, Danakali will kick off development of the 1.1 billion-tonne potash project.
Construction of the mine, 100% owned by Colluli Mining Share Company (CMSC), a 50:50 joint venture between the Aussie miner and the Eritrean National Mining Corporation (ENAMCO), is expected to take two and a half years.
“The government will benefit from the longer-term development of the project, and the expected significant boost to royalties, taxation and exports, and from jobs and skills and economic development of the region,” Wage told MINING.COM.
For the rest of this article: https://www.mining.com/danakali-to-start-developing-vast-potash-project-in-eritrea-by-year-end/