Danakali flags improvements to Eritrea potash project
Cecilia Jamasmie | September 2, 2020 | 7:03 am News Africa Potash
Australia’s Danakali (ASX, LON:DNK) said on Wednesday it has completed an updated process plant and infrastructure study for its Colluli potash project in Eritrea, which has identified optimization opportunities for the proposed mine.
The Perth-based company, which has completed phase two of engineering, procurement and construction management (EPCM) work at Colluli, said main potential improvements are related to the environmental and economic aspects of the project.
A third-party review of the work by DRA Global found the beach well intake minimised risk to subsea and coastal habitats by avoiding onshore pipeline construction and offshore installation.
Another optimization was dry harvesting from back end recovery ponds, resulting in a less complex processing design.
A THIRD-PARTY REVIEW OF THE WORK BY DRA GLOBAL FOUND THE BEACH WELL INTAKE MINIMISED RISK TO SUBSEA AND COASTAL HABITAT
Danakali has also selected RA International as camp provider which will give the project a fit for purpose manufactured camp.
Chief executive officer Niels Wage said the assessment provides “increased certainty and understanding” of the project and its schedule.
“The detail review process again validates the robustness of the project and previous technical studies,” he said.
“It is also pleasing to see that a number of optimisation opportunities in the process are established that will further de-risk the project,” Wage added.
Colluli, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO), is on track for production in 2022.