Danakali has been given the final green light from the Eritrean Ministry of Energy and Mines to develop its world-class Colluli potash project

In accordance with the mining agreement, the Colluli Mining Share Company (CMSC) has 36 months from the submission of the approved notice (notice of commencement of mine development) to spend US$200 million within the mining license area.

BY TESFANEWS *

Australia’s Danakali (ASX, LON:DNK) is closer to getting its Colluli potash project off the ground after the Eritrean Ministry of Energy & Mines (MoEM) accepted the company’s development plan for the mine.

The endorsement takes the miner another step closer towards building the world-class sulphate of potash (SOP) mine, which has been called “a game-changer” for Eritrea’s economy.

MoEM has also granted permission to construct and develop outside the mining license area. This includes seawater intake and treatment area at Anfile Bay and a 57-kilometer road.

Additionally, MoEM has shown support for the project’s financing by approving its account structure and consenting to grant security.

Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is expected to become one of the world’s most significant and lowest-cost sources of sulphate of potash (SOP), a premium grade fertilizer.

CMSC has previously obtained all licenses, permits, and regulations within the Colluli mining license.

“I am pleased to report that the Eritrean Ministry of Energy and Mines has formally accepted CMSC’s Notice of Commencement of Mine Development,” CEO Niels Wage said.

“This year, the project team has made significant progress through the management of DRA during phase one and two of the engineering, procurement, construction management (EPCM) works and most recently by commencing the necessary test works, enabling us to maintain the forward momentum of the project development,” he added.

Danakali now has 36 months from the submission of the approved notice to complete the project.