Colluli is located in the Danakil Depression region of Eritrea and is approximately 230km by road south-east of the port of Massawa, which is Eritrea’s key import/export facility. The Danakil Depression is an emerging potash province, which commences in Eritrea and extends south across the border into Ethiopia.
The Colluli resource comprises three potassium bearing salts in solid form: sylvinite, carnallitite and kainitite. These salts are suitable for high yield, low energy production of SOP, which is a high quality potash fertiliser carrying a price premium over the more common MOP. Potassium sulphate has limited production centres around the world and is suitable for application to fruits, vegetables, coffee plants and other chloride intolerant crops.
The salt composition in the Danakil region also provides the ability to produce a suite of potash products including SOP, Sulphate of Potash-Magnesia (SOP-M) and MOP. Such potash product diversification cannot be achieved by any other known potash region in the world.
Colluli boasts the shallowest known evaporite mineralisation globally and has significant mining, logistics and, in turn, capital and operating cost benefits over other potash development projects in the Danakil Depression and elsewhere.
The Project carries a low level of complexity due to predictable processing plant feed grade, predictable production rates – given low reliance on weather conditions – and simple, commercially proven mineral processing technology.
The mine will consist of a single open-cut pit, with a progressive working face that provides access to each of the mineralised layers simultaneously. Mining will be conducted by mining contractors using conventional mechanised equipment (including surface miners, excavators, bulldozers and haul trucks) and methods. No drill and blast is required.
Colluli is fully permitted following the signing of the Mining Agreement in February 2017, and the subsequent awarding of the requisite Mining Licenses.
Project development commenced in early 2020 following the receipt of the majority of required financing. Project management activities are underway, and the company expects to begin production in 2022. The Colluli deposit is unrivalled in the SOP industry and pivotal for global agriculture.
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