Danakali said that all EPCM Phase 2 workflows continued despite the Covid-19 restrictions
Australia’s Danakali has announced that it is in the final stages of completing the EPCM Phase 2 for Colluli potash project in Eritrea, East Africa.
The second phase development of the project is now expected to be completed in June.
The potash 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).
Danakali said that all EPCM Phase 2 workflows continued despite the Covid-19 restrictions.
The company announced the receipt of all contractor and vendor tender packages, enabling DRA Global (DRA) to finalise the tender evaluation process.
The key objectives outlined for the EPCM Phase 2 include update of a front end engineering design (FEED) capital estimate; revision of the FEED project schedule; and identification of key test work needed to ensure full preparedness for EPCM Phase 3.
Danakali stated: “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.
“A number of optimisation opportunities to improve project design will be presented at the end of EPCM Phase 2.”
Colluli is one the world’s shallowest known potash deposits
Located in the Danakil Depression region of Eritrea, East Africa, the Colluli potash project is nearly 75km from the Red Sea coast. The location of the project makes it one of the most accessible potash deposits globally.
In addition, it is also one of the shallowest known potash deposits, as mineralisation within the Colluli resource commences at just 16m.
The project is a late-stage, low-cost sulphate of potash (SOP) deposit with an estimated reserves of 1.254bn tonnes of potassium bearing salts.
SOP production is expected to begin during 2022.
In December last year, Africa Finance Corporation (AFC) approved a funding of $150m to Danakali for the potash project.