Danakali progressing several potash offtake MOU’s
Multinational parties from around the world are lining up to buy Eritrea's high quality potash
ASX-listed potash developer Danakali has received strong interest in the sulphate of potash (SOP) that it will produce from its Colluli potash project in Eritrea.
Eritrea - In line with this, Danakali is progressing eight memorandums of understanding (MOUs) with multinational parties throughout Northern Africa, Europe, Middle East and North America for the offtake of its SOP.
Danakali said in a statement that the offtake discussions with the parties are progressing well towards binding offtake agreements.
High-quality representative samples produced from the Colluli resource were provided for quality control assessment by prospective customers, while engagement with potential Asian customers has yet to commence, and will represent a strong potential for additional product volume interest.
The combined offtake volumes in the MOUs exceed 800 000 tpa in both standard and granular form, which compares to Colluli’s design production capacity of 425 000 tpa – which is twice the volume of Module 1.
Danakali MD Paul Donaldson believes that the signed MoUs and negotiations underway with potential offtakers highlight that SOP is, and will continue to be, a product in high global demand.”
The project is wholly-owned by Colluli Mining Share Company (CMSC), which is a 50/50 joint venture between Danakali Limited and the Eritrean National Mining Company.
To date, the highly favourable definitive feasibility study (DFS), as released in November 2015, has been submitted to the Eritrean Ministry of Energy and Mines and the social and environmental impact assessments and associated management plans have been completed in line with the Equator Principles
Danakali and CMSC have also completed post DFS stakeholder engagements.
The DFS highlights that Colluli is the premier premium potash and multi-agri commodity investment opportunity globally with a favourable suite of potassium bearing salts, shallow mineralisation, proximity to coast and simple and proven processing technology, which is underpinned by a massive 1.1 Bt ore reserve which delivers an estimated mine life of over 200 years at the DFS production volumes.
Danakali progressing several potash offtake MOU’s Reviewed by Admin on 1:05 AM Rating: