In the EPCM Phases 1 and 2 a number of optimisation opportunities were identified


The Colluli Potash Project is located in Eritrea, East Africa. (Credit: Saperaud~commonswiki/Wikipedia)

Danakali Limited provided project update of the Colluli Potash Project (Colluli or the Project), located in Eritrea, East Africa. The Project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).

FEED Updated: We are pleased to advise that EPCM Phase 1 and 2, which relate to the process plant and associated infrastructure work have been completed. These phases provide greater certainty of scope definition following the third-party review by DRA Global.

Optimisation: In the EPCM Phases 1 and 2 a number of optimisation opportunities were identified. Examples are:

o  WITA area: A trade-off study has confirmed the use of a Beach Wells intake method is preferred in lieu of a subsea intake pipeline. This optimisation is beneficial to the environment, minimising risk to the subsea and coastal habitats by avoiding onshore pipeline construction and offshore installation. Furthermore, the design eliminates chlorine dosing and improves the quality of the discharge water as the pre-treatment feedwater requires less chemicals.

o  As announced on 20 August 2020, RA International was selected as the preferred Camp provider. With a pre-manufactured, high quality camp that is containerised and ready to mobilize, it can be installed at a significant discount and immediate economic benefits are created. The short availability of this camp significantly de-risks our execution schedule and allows an earlier commencement of site activities.

Niels Wage, CEO of Danakali, commented: “I am pleased to announce the results of this review update giving increased certainty and understanding of the Colluli Project schedule. The detail review process again validates the robustness of the project and previous technical studies. It is also pleasing to see that a number of optimisation opportunities in the process are established that will further de-risk the project”.

Tony Harrington, Project Director of Danakali, commented: “In phases 1&2 of the EPCM work we have been working closely with DRA on the review of the 2018 FEED study; I am pleased to see that original FEED study is very robust and we have progressed to a more defined scope and de-risked design, an example of this, that I am proud of, is our WITA study results that among other things demonstrates a lower environmental impact than in our already approved Social Environmental Impact Assessment and the Social Environmental Management Plan.

Source: Company Press Release